ADRE Model Broker Policy Manual-Transaction Logs

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Transaction Logs

This section should include:

  • A description of the manual or automated chronological or other numbering images-1system used to log transaction files.
  • That all purchase contracts and lease agreements must be logged in.
  • The Broker’s directions to employees/licensees on how and when to log all files for all sales, leases, and property management contracts, so that the Broker has a complete and comprehensive log. A.R.S. § 32-2151.01(E) and 32-2175(E) and (F).

Under A.R.S. § 32-2151.01 the Broker’s record keeping requirements are:

  • To keep records of all real estate, cemetery, timeshare or membership camping transactions handled by or through the broker.
  • To keep employment records, including copies of employment status, for all current and former employees.
Quick Quiz

Fill in the Blank:

To keep of all real estate, cemetery, timeshare or membership camping transactions handled by or through the .

  • To keep copies of earnest money receipts, confirming that the earnest money has been handled in accordance with the transaction, closing statements showing all receipts, disbursements and adjustments, sales contracts and, if applicable, copies of employment agreements.
  • The records of each transaction and employment records shall be kept by the broker for a period of at least five years from the date of the termination of the transaction or employment.
  • The records shall be kept in the employing broker’s principal office or licensed branch office in this state or at an off-site storage location in this state if the broker provides prior written notification of the street address of the off-site storage location to the department.
  • The records shall be open at all reasonable times for inspection by the commissioner or the commissioner’s representatives.
  • A broker shall not grant any person authority to withdraw monies from the broker’s trust fund account unless that person is a licensee under that broker’s license. (Except as allowed by Section 32-2174 (C) regarding property management accounts.
  • A broker shall specifically state in the real estate purchase contract, lease agreement or receipt for earnest money the type of earnest money received in any real estate transaction, whether it is cash, a check, a promissory note or any other item of value.
  • All licensees shall promptly place all cash, checks or other items of value received as payment in connection with a real estate transaction in the care of the designated broker.
  • The broker shall maintain each real estate purchase contract or lease agreement and the transaction folder in which it is kept in a chronological log or another systematic manner that is easily accessible by the commissioner or the commissioner’s representatives.

Sales transaction folders shall include:

  • Confirmation that the earnest monies or other monies handled by or through the broker were handled according to instructions given by or agreed to by the parties to the transaction.
  • A complete copy of the sales contract, any escrow account receipt, any closing or settlement statement and, if applicable, a copy of the escrow instructions, listing agreement, employment agreement and release of escrow monies.

The designated broker shall review each listing agreement, purchase or brokerindependencemi-resize-600x338nonresidential lease agreement or similar instrument within five days of the date of execution by placing the broker’s initials and the date of review on the instrument on the same page as the signatures of the parties. A designated broker may authorize in writing an associate broker who the designated broker employs to review and initial these instruments on the designated broker’s behalf.

The broker shall retain all real estate purchase and nonresidential lease contracts and employment agreements, or copies of these documents, in the employing broker’s principal office or licensed branch office or at an off-site storage location in this state if the broker provides prior written notification of the street address of the off-site storage location to the department.

The broker shall retain an original, copy or a microfilm copy of any document evidencing a rejected offer to purchase real property as a matter of record for at least one year. In instances that result in binding contracts, the broker shall retain prior rejected offers for at least five years.

A.A.C. R4-28-802(C) provides: the broker shall retain true copies of all receipts and disbursements, or copies of the executed and delivered escrow closing statements that evidence all receipts and disbursements in the transaction.

Quick Quiz

Fill in the Blank:
The shall retain an original, copy or a microfilm copy of any document evidencing a rejected offer to purchase real property as a matter of record for at least one .

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