Kansas Real Estate Broker Administrative Regulation No. 86-3-10

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:

Transaction Files
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
  • option
  • 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
    • amount
    • date of each deposit
    • check number
    • date of check
    • payee
    • 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.

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Online Backup for Real Estate Brokers in Missouri

Since today’s blog focuses on the Show-Me State, we’re going to do just that. If you’re a real estate broker in Missouri, you’re required to retain your transaction records for a minimum of three (3) years according to the Missouri Real Estate Commission.  Here’s the actual document that outlines these regulations, http://pr.mo.gov/boards/realestate/November%202009%20MREC%20Rule%20Book.pdf. On page 54 is the rule CSR 2250-8.160 regarding Retention of Records that’s available for any Broker to review for themselves.

Here is a video we created that talks about the benefits of using online backup versus traditional methods of data storage like cardboard boxes and CDs.

Missouri seems pretty reasonable with their record retention requirements. Three (3) years isn’t too bad to have to hold on to hard copy files. Just remember, that there is a square footage cost issue surrounding boxes stored in offices that we always blog about and the possibility of natural disasters (fire, flood & storm damage) that might never affect your business, however, one incident can bring your entire operation to a grinding halt if you don’t use a solution like online backup. Considering the current storms in Missouri, we strongly recommend that small businesses in these areas seriously consider online backup in their business continuity planning.

If you’d like to learn more about online backup as an option for your business, give us a call at 1 877 310-2884 and one of our Backup Specialists will be pleased to continue this conversation with you.

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As we scan across the nation, today we’ll focus on Montana. Brokers in Montana are required to hold their records for five (5) years for trust accounts and proprty management transactions according to The Montana Board of Realty Regulation. This is similar to several states in the U.S. The norm seems to be anywhere from 3 to 5 years, with the odd state coming in with regulations at 6 or 7 years.

In the regulations, it states ”all required trust account records may be maintained electronically but must be maintained in a manner to permit auditing”. This is good news if you’re a Filetwin user. Why? Because we present you with your files in a file tree similar to that which you’re already accustomed to if you use Windows Explorer.

Exploring Backed Up Files using Filetwin

Additionally, since Montana requires five (5) years, it’s prudent to keep in mind that Google even has proven that the average life expentancy of a hard drive is five (5) years. The proof can be found if you read this article from Google. We also recommend you watch our YouTube video snippet regarding the use of traditional storage media versus online backup. Basically, using online backup is the most reliable backup alternative if you’re required by regulations or laws to retain your records for such and extended period of time.

Remember this, it’s always easy to do nothing and just continue with current procedures, however, what’s important to keep in mind is that when something goes wrong and data is lost the cost of reproducing those records is way more expensive than if you made a small investment when you still had a chance. Yes, we did say investment because the overwhelming obstacles is normally a financial justification. We prefer to look at safeguarding your digital records as an investment because we’ve seen the horror stories surrounding data loss.

If you’d like to continue this conversation in person, please feel free to contact one of our U.S. based customer service representatives at 1 877 310-2884 and they’ll be glad to speak with you.

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