Company Office Audit Information

Audit Checklist  (Requested Items For Office Audit)

  1.  Real Estate Licenses

  2.  List of all teams within the company (the list should identify the team leader and name every member of the team)

  3.  Sign identifying office

  4.  Agency Disclosure Office Policy (*Acknowledgement of policy signed by all licensees yearly)

  5.  All sales files (closed, open, and failed transactions) for past three years

    6. Sales files will be audited for the following documents:

  6. RECAD
    • Agency Disclosure Office Policy provided to consumers (for transactions with a purchase agreement executed after April 18, 2025)
    • Brokerage Agreements
    • Written consent from all clients in a transaction for any individual licensee to act as a dual agent
    • Written designation from the Qualifying Broker for licensees within the company to act as single agents for parties on the opposite side of a transaction (for transactions with a purchase agreement executed after October 1, 2025)
    • Purchase Agreements and Addendums
    • Estimated Closing Statements
    • HUD Statements
    • Canceled checks, money orders, and wire transfers

  7.  Lease agreements, management agreements, and rental records

  8.  Copies of past six months' bank statements with canceled checks for all trust accounts

  9.  Copies of latest bank reconciliation performed on all trust accounts

  10.  Checkbook and/or computer check register for all trust accounts

  11. Duplicate deposit tickets with validated bank receipt for all trust accounts

  12. Any lists or ledgers documenting the funds held for trust purposes

NOTE: “Trust Funds” include sales binders, security deposits, rent receipts, and/or any other funds held for members of the public.

Office Inspection Suggestions

  • Balance escrow account checkbook as soon as possible after the receipt of each statement.
  • Tape canceled checks back into the checkbook adjacent to the stub so you will have a complete record of the check and not have to search statement envelopes for the check in question.
  • Prepare a continuous list of pending contracts with the amount of earnest money involved. Mark off each transaction as it closes, the money is refunded, or it is forfeited by purchaser or seller.
  • If the bank imposes a service charge, the charge should be deducted from the account before the remainder of the commission is removed to prevent overdraft charges. The Commission has ruled that additional designated funds may be deposited into the account to cover bad checks, service charges, etc.
  • Keep all pending contracts separate from closed contracts.
  • Maintain a separate escrow account for rental or leased property to distinguish it from sales contracts which do not have repairs, owner’s payments, etc.
  • Keep written receipts for all funds received, whether by cash or check, as a means of internal control.