If you’re a real estate broker in the Sunflower State, then you are required to retain your records for a period of three (3) years according to the Kansas Real Estate Commission. Here is a link to administrative regulation 86-3-10 so you can verify so you can verify for yourself.
Here are some guidelines for electronic storage of documents for a real estate broker in Kansas:
Each transaction file whether PENDING, CLOSED, FAILED, or CANCELED must be indexed and each file should contain all of the following records IF APPLICABLE to the transaction to be in compliance with K.A.R. 86-3-10.
- agency agreement with seller
- agency agreement with buyer
- transaction broker addendum
- transaction brokerage agreement
- offers, counteroffers
- contract, including all amendments, and addenda
- lot reservation agreement
- commercial lease
- receipt for purchase agreement and earnest money
- closing statements
- authorization to disburse earnest money on transaction which did not close
- any other record generated in connection with the transaction (this would include phone notes, e-mails, inspection reports, estimated closing costs, correspondence, surveys, appraisals, title reports, and any documentation generated during the transaction.)
Trust Account Records (if applicable)
A complete record of all monies received or escrowed on real estate transactions must be maintained:
- deposit slips showing transaction number, date of deposit, amount and where deposited
- monthly trust account bank statement, canceled checks and deposit slips
- a check register which shows the chronological sequence in which funds are received and disbursed
- for funds received: date of deposit, transaction number, amount
- for disbursement: date, transaction number, payee, amount
- the current balance
- a ledger for each transaction, including:
- names of principals
- property address
- transaction number
- date of each deposit
- check number
- date of check
- amount of each disbursement
- the current balance
- a ledger for broker’s funds, if applicable
1. Records would need to be scanned into a system by indexing each with a TIN and client or customer name. If you save your files with the TIN as the filename, you’ve satisfied this point.
2. The system would need to allow the auditor or investigator to be able to retrieve the documents and also have the ability to print the documents. This is no problem for Filetwin because you’d just open the files from your backup folder set.
3. This software must be updated periodically so that records are always readable. Filetwin handles this requirement for you.
4. The system should be in a format that once scanned documents may not be altered at a later time. Once documents are backed up, they cannot be edited in any shape or form.
Hopefully, this information helps and if you’d like to continue this conversation in person, please give us a call at 1877-310-2884.