Current through Register Vol. 43, No. 12, March 20, 2024
(a) Each supervising broker, and each branch
broker who maintains a separate trust account for a branch office pursuant to K.S.A.
58-3061 and amendments thereto, shall maintain in the broker's office a complete
record of all monies received or escrowed on real estate transactions, including the
following:
(1) Deposit slips showing the unique
transaction number assigned pursuant to K.A.R. 86-3-22, the date of deposit, the
amount, and where deposited;
(2) monthly
trust account bank, savings and loan association, or credit union statements,
including canceled checks and deposit slips;
(3) all voided trust account checks;
(4) a check register that shows the chronological
sequence in which funds are received and disbursed. For funds received, the check
register shall include the date of deposit, the unique transaction number assigned
pursuant to K.A.R. 86-3-22, and the amount. For disbursement, the check register
shall include the date, the unique transaction number assigned pursuant to K.A.R.
86-3-22, the payee, and the amount. A balance shall be shown, and the balances shall
be kept current;
(5) a ledger for each
transaction. The ledger shall include the names of the principals, the property
address, and the unique transaction number assigned pursuant to K.A.R. 86-3-22; the
amount and date of deposit of all monies received; and the check number, the date,
the payee, and the amount of each disbursement. The broker shall note any deposit
recorded in the trust account before contract acceptance. If the offer is accepted,
the broker shall note the contract acceptance date on the ledger. If the offer is
rejected or withdrawn before contract acceptance, the broker shall record the
disbursement, note the rejected or withdrawn offer, and return the earnest money to
the prospective buyer. A balance shall be shown for each ledger account, and
balances shall be kept current; and
(6)
a ledger for broker's funds, if those funds are deposited in the trust account
pursuant to K.S.A. 58-3061, and amendments thereto. A balance shall be shown for
each ledger account, and balances shall be kept current.
(b) The trust account shall be reconciled monthly
against bank, savings and loan association, or credit union records, unless there
has been no activity during the month.
(c) Trust account liability, as established by
ledger sheet balances, shall be compared to the reconciled trust account balance
monthly, unless there has been no activity during the month.
(d) Each supervising broker or branch broker who
closes a trust account shall notify the commission by filing a "report on closing
trust account" with the commission on a form approved by the commission, accompanied
by a copy of the bank, savings and loan association, or credit union statement
showing that the trust account has been closed, within 10 days of the occurrence of
any of the following:
(1) Closure of the trust
account;
(2) closure of the primary
office or branch office, unless an exemption not to maintain a trust account has
been granted by the commission for each trust account that was in existence when the
primary office or branch office closed; or
(3) a change in the account number for the trust
account or a change in the bank, savings and loan association, or credit union in
which the trust funds are held.
