Current through Register Vol. 54, No. 7, April 4, 2022
shall keep records as prescribed herein of all funds of others received by him
or her for not less than six years from the date of receipt of any such funds.
All such funds shall be deposited by the broker in accordance with the
1. Whenever a broker receives funds to be
held in trust in cash, a written receipt signed by the licensee to whom the
funds were paid and specifying the date, amount, purpose and from whom those
funds were received shall be issued to the payor of the funds. A copy of that
receipt shall be retained by the broker as prescribed in this
required to be kept pursuant to (a) above shall include:
Written references on the checkbook stubs
or checkbook ledger pages to all deposits into and withdrawals from the
account(s) maintained by the broker in accordance with
, which shall specifically
identify the date, amount and payor of each item deposited, the property to
which the monies pertain and the reason for their being held by the broker.
Such records shall also specify the date, amount, payee and purpose of each
disbursement. All trust or escrow account withdrawals shall be only by
authorized intrastate or interstate bank transfer or by check payable to a
named payee and not to cash;
appropriate ledger book for all trustee accounts or escrow accounts showing, in
one location in that ledger book for each separate trust transaction, the payor
of all funds deposited in such accounts, the date of deposit, the names of all
persons for whom the funds are or were held, the amount of such funds, the
amounts and dates of all disbursements of such moneys, and the names of all
persons to whom such funds were disbursed. The Commission will not deem a
regular checkbook ledger as sufficient to constitute an appropriate ledger
book. Such a ledger book may be maintained in a computer or similar device, so
long as it is capable of reproducing the electronically stored data on paper so
as to depict the complete history of all activity in each separate trust
transaction, and the data can be maintained in an easily accessible form for
the required six year period. A regular running balance of the individual
transaction ledger sheets shall be maintained. The total of the running balance
must agree with the control figure computed by taking the beginning balance,
adding the total of moneys received in trust on that transaction, and deducting
the total of all moneys disbursed;
who accept credit card charges on short term rental transactions and who
maintain a reserve in their special trust or escrow account to which funds
received through such charges are credited as provided in
shall record in one location in their ledger book, entries specifying deposits
made to establish, replenish, and increase the reserve amount and all
withdrawals made to reduce the reserve amount. Brokers who maintain reserves in
such special escrow or trust accounts shall not be required to make an entry in
their ledger for each transaction fee debited from the said account as a result
of their acceptance of a payment through a charge on a credit card.
3. Copies of all records, showing
that at least quarterly a reconciliation has been made of the checkbook
balance, the bank statement balance and the client trust ledger sheet
All bank statements,
cancelled checks, duplicate deposit slips and, if the broker accepts credit
card charges on short term rental transactions as provided in
, all confirmation slips
or other written material reflecting the broker's acceptance of such
5. Copies of all offers,
contracts of sale and sale or rental listing agreements;
6. Copies of all leases and property
7. Copies of
all statements to owners, sellers, purchasers and tenants showing the
disbursement of funds to them or on their behalf, which statements shall
identify the property and unit, if applicable, for which the disbursement was
made and the reason for the disbursement;
8. Copies of all bills paid for owners,
sellers, purchasers or tenants by the broker from escrowed funds, which
payments may only be made pursuant to written authorization;
Copies of all records showing payments to
persons licensed with the paying broker and to cooperating brokers, which
records shall contain all information required by
10. Copies of all receipts
issued for all security deposits accepted from tenants, and of checks for and
letters accompanying the release of such funds, and/or the duplicate deposit
slips evidencing the deposit of such funds by the broker.
With the exception of the materials
described in (d) below, on transactions where a broker has not received the
property or funds of others, the following records shall be maintained for six
years from the earlier of the date of the listing or property management
agreement or of the contract or lease:
Copies of all fully executed leases, contracts of sale, property management and
2. Copies of
bills for brokerage services rendered in such transactions;
3. Copies of all records showing payments to
persons licensed with the paying broker and to co-operating brokers;
4. Copies of all bank
statements, cancelled checks and duplicate deposit slips pertaining to the
broker's general business account.
(d) Unaccepted offers and expired listing
agreements during the term of which no contract of sale was executed or no
tenancy was entered into shall be maintained for six months from the date of
the offer or the expiration date of the listing agreement.
(e) The financial books and other records as
described in (a), (b), (c) and (d) above shall be maintained in accordance with
generally accepted accounting practice. They shall be located at the main New
Jersey office of each broker or, in situations where separate general business
and/or trust or escrow accounts are maintained at licensed branch offices,
either at that branch office or at the main office of the broker. Copies of all
items designated as records in (a) through (d) above shall be maintained by
brokers as provided in this section. Items may be maintained either on paper or
stored electronically in a computer or similar device, so long as the
electronically stored data can be readily reproduced on paper so as to depict
the complete history of all activity and the data can be maintained in an
easily accessible form for the required six-year period. This requirement shall
apply to all such records, including any items generated through e-mail or any
other means which does not require the creation of a paper document. All such
records shall be available for inspections, checks for compliance with this
section and copying by a duly authorized representative of the New Jersey Real
Estate Commission. Licensees may be required to certify to the accuracy of the
N.J. Admin. Code §
Amended by R.1989 d.425,
effective 8/21/1989 (operative
November 19, 1989).
See: 21 N.J.R. 1310(a), 21 N.J.R. 2520(a).
Clear specifications added regarding the type of business records
brokers are required to maintain, new (a)1, new (b)1-10, and new (c)-(e).
Amended by R.1998 d.246, effective 5/18/1998.
See: 30 N.J.R. 278(a),
30 N.J.R. 1827(a).
In (e), inserted new third and fourth
Amended by R.1998 d.497, effective
N.J.R. 2333(a), 30 N.J.R. 3646(a).
In (a), changed N.J.A.C.
reference and deleted references to property; and in (b), changed N.J.A.C.
Amended by R.1999 d.444, effective
31 N.J.R. 2675(a), 31 N.J.R. 4282(a).
In (b), inserted 2i, and
Amended by R.2009 d.287, effective
N.J.R. 1381(a), 41 N.J.R. 3440(a).
In (e), substituted "Copies"
for "Paper copies" and "e-mail" for "E-mail", and inserted the fourth and last