The real estate firm owns all listings, transactions, management agreements, and other brokerage service contracts.
Brokers and managing brokers are required to deliver, fax, or email all transaction records and brokerage service contracts to their firm’s designated broker, or delegated managing broker, within 2 business days of mutual acceptance. Commonly, these documents include:
You must keep transaction documents and brokerage service contracts for at least 3 years. In addition to mutually-accepted contracts, the records should include receipts, closing statements, and material correspondence. All records must be available to the auditor at your license location upon request.
If you have an agreement with a client to pay an advance fee (for example, to cover advertising costs), all advance fee checks must be made out to the firm to which you’re licensed. You can’t personally retain funds that come directly from a client or customer for any brokerage services.
The real estate licensing law doesn’t prohibit agreements with clients for direct reimbursement of expenses required in a purchase and sale agreement. However, you should follow the policies of your firm and ask your designated broker for guidance before making this type of agreement. Also make sure your firm’s transaction file includes paperwork explaining the payment and reimbursement for audit purposes.