ADRE Model Broker Policy Manual-Transaction Paperwork

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Transaction Paperwork and Management

Listings

This section should include:images

  • That a Sales Associate must turn in every Listing to the Broker immediately upon the Seller’s signature.
  • Any additional documents the Broker requires.

Sales

This section should cover:

  • Cemetery Sales, Membership Camping Contracts, and/or Timeshare Sales, if authorized by the Broker.
  • That transaction records for closed sales and leases must be kept for five years.
  • That records for transactions that do not close must be kept for one year. (A.R.S. § 32-2151.01 and A.A.C. R4-28-802).
  • What records must be kept (including copies of earnest money receipts; closing statements showing receipts, disbursements, and adjustments; purchase and lease contracts; addenda; listing agreements).
  • In transactions where a binding contract result, the broker must also retain prior rejected offers for at least five years. (A.R.S. § 32-2151.01 (J))
  • Procedures and timing for Sales Associates to turn in documents to the Broker.
  • That the Broker or assigned Branch Manager must acknowledge all contracts, including listing contracts, within three days of receiving signatures.
  • Additional requirements or documents that must be turned in before a Sales Associate being paid a commission.
  • The Company’s Privacy Policy/Data Security Policy should be restated or a reference made to the Privacy Policy/Data Security section of the manual.

Leases

This section should cover:

  • How to handle the leasing information (personal financial information) and the protection of that information.
  • What documents are required for the broker file?
  • What disclosures should be made to the tenant?
  • Which forms the Sales Associates should use?
  •  A clear policy regarding trust accounts.
Quick Quiz

Fill in the Blank:

That the or assigned Branch Manager must acknowledge all contracts, including listing contracts, within three days of signatures. 

Cancellations

This section should cover:

  • How to handle a canceled transaction (which may depend on the reason for cancellation).
  • What documents does the Company require be signed before cancellation?

Maintenance of Transaction Files

This section should cover:

  • Any lists of documents required in transaction files, including resales, new home sales, land sales, listings, etc. This is a good place for established checklists or references to the most current checklists required by the Company.
  • The necessary timing for each document required, such as timing required to submit to the broker for review and approval.
  • What documents require broker’s initials or signature.
  • How rejected offers are to be handled.
  • Whether listing agents are expected to verify listing information prior to submitting to MLS.
  • What documents are required in the file for canceled transactions?
  • How files involving a transaction where a Sales Associate is a principal in the transaction are to be handled.
  • Access to files: who has access and where files are to be kept.
  • For a checklist of Transaction file documents.
Quick Quiz

Fill in the Blank:
Any lists of documents in transaction files, including resales, new home sales, land sales, , etc.

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