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Professional Standards Manual

Notice of Change: Information in this manual changed when new agency and disclosure rules came into effect on June 15, 2018. Learn more about the new rules.Notice of Change: Information in this manual changed when new agency and disclosure rules came into effect on June 15, 2018. Learn more about the new rules.

General Information

5. Brokerage Responsibilities

(e) Records and Reports

The Rules set out a variety of financial and non-financial records that a brokerage must maintain.

A brokerage is required to maintain financial records for the brokerage which indicate the amount of money received or paid by the brokerage on its own account and on account of others. A brokerage must maintain the banking documents for the general accounts and records which show the receipts and disbursements of cash.

Every brokerage must maintain trust account records, including:

  • a cash record showing all transactions affecting the trust account,
  • a journal showing amounts received and disbursed.

It must also keep a separate ledger for:

  • each trade in real estate,
  • each principal in relation to rental property management services,
  • each principal in relation to strata management services, and
  • each licensee showing the amounts received and disbursed.

The brokerage must prepare a monthly trust liability and asset reconciliation.

Section 8-4 of the Rules sets out various general records relating to the provision of real estate services that a brokerage must retain; section 8-5 of the Rules sets out what documents must be retained in respect of trades in real estate; section 8-6 of the Rules sets out what documents must be maintained when a brokerage provides rental property management services, and section 8-7.1 of the Rules sets out what documents a brokerage must keep when it provides strata management services.

The Rules require that a brokerage retain its records for a minimum of seven years after their creation unless a shorter period is authorized in writing by RECBC.

Each year, within 120 days of the end of a brokerage’s fiscal year, the brokerage must file financial statements, an Accountant’s Report, and a Brokerage Activity Report with RECBC. The financial statements must be audited if the brokerage is a public company and, in other cases, subjected to at least a review engagement report by an accountant.

Under section 7-7(2.1) of the Rules, RECBC may authorize a brokerage to file financial statements that have been subject to a Notice to Reader prepared by an accountant if certain conditions are met. Please refer to the Brokerage Standards Manual for further information. As an alternative to filing an Accountant’s Report, a brokerage that did not hold or receive any public trust money during the fiscal year to which the financial statements relate may file with RECBC a solemn declaration. For further information, please contact RECBC’s office or refer to the Brokerage Standards Manual.

At the time that a brokerage is winding up, the brokerage must promptly submit a winding-up report. Samples of the Accountant’s Report, the Brokerage Activity Report and the Brokerage Winding-Up Report are available on RECBC’s website at www.recbc.ca.