Part 3 - Accounting, Records and Reporting Requirements

Definition
81 In this part,
(a) “appraiser” means real estate appraiser and includes candidate; and
(b) “brokerage” means a real estate brokerage or mortgage brokerage unless stated otherwise.
  Oct 1/06


Division 1 - General Requirements

Electronic Records

82(1) A brokerage and appraiser may convert and store written, printed, or any paper records into electronic format if the following conditions are met:
(a) the storage location and medium where the electronic records are to be stored is reliable and can reasonably be expected to maintain the integrity of the information from the time the electronic record was created;
(b) the identity of the person who made the electronic copy of the written, printed or any paper record and date of the recording into electronic form is embedded in the document without altering the information contained in the written, printed or any paper record;
(c) the information is maintained in an electronic form that does not materially alter the information originally contained in the written, printed or any paper record;
(d) the record in electronic form is safeguarded by password or security codes controlled by the brokerage or appraiser so that the record cannot be altered;
(e) the brokerage or appraiser maintains a copy of the computer program or of any other electronic devices required for the electronic records to be viewed and reproduced in printed form in a timely manner;
(f) the electronic records are located in a physical premise, accessible by the broker or appraiser in Alberta;
(g) the physical location where the electronic records are stored is secure and is only accessible by the broker, appraiser or by persons authorized by the broker or appraiser; and
(h) the brokerage or appraiser has a system to ensure all electronic documents created in respect to a trade or potential trade, deal or potential deal or appraisal or appraisal services are stored together or are linked so as to create a complete record of all documents or records relating to the trade or potential trade, deal or potential deal or real estate appraisal or appraisal services.
82(2) A brokerage or appraiser may retain in electronic form records created, sent or received in electronic form if:
(a) the storage location and medium where the electronic records are to be stored is reliable and can reasonably be expected to maintain the integrity of the electronic information;
(b) where the electronic record was sent or received, information, if any, that identifies its origin and destination is also retained;
(c) the information in electronic form is maintained in the format in which it was created, sent or received, or in a format that does not materially alter the information of the original record in electronic form;
(d) the brokerage or appraiser maintains a copy of the computer program or of any other electronic devices required for the electronic records to be viewed and be reproduced in printed form in a timely manner;
(e) the document in electronic form is safeguarded by password or security codes controlled by the broker or appraiser so that  the records cannot be altered;
(f) the electronic records are located in a physical premise, accessible by the broker or appraiser in Alberta;
(g) the premises where the electronic records are stored are secure and are only accessible by the broker or appraiser or by persons authorized by the broker or appraiser; and
(h) the brokerage or appraiser has a system to ensure all electronic records created in respect to a trade or potential trade, deal or potential deal or real estate appraisal or appraisal services are stored together or are linked so as to create a complete record of all documents or records relating to the trade or potential trade, deal or potential deal or appraisal or appraisal services.
82(3) The broker or appraiser or a person authorized by the broker or appraiser may only delete electronic records in compliance with the record keeping requirements under the Act.
  Oct 1/06

Electronic Copies of Trust Fund Cheques
83 A brokerage may receive electronic copies of cheques used to make disbursements from an account in which money is held in trust, only if copies of both the front and the back of the cheque are received.
  Oct 1/06, Resolution 2010-1

Depositing Funds Electronically
84(1) A brokerage that deposits funds electronically, using an ABM bank card and an automatic banking machine, into an account in which money is held in trust shall maintain the automated banking machine deposit receipt that indicates the account number, time, date and amount of the deposit.
84(2) A brokerage that deposits funds electronically, using the Internet, into an account in which money is held in trust shall maintain a written record signed and dated by the broker or authorized person that indicates the account number, date, amount and details of the deposit.
  Oct 1/06

Electronic Transfer of Trust Funds
85(1) An ABM card may be used to transfer funds from an account in which money is held in trust only if the following conditions are met:
  (a) the ABM card must be issued prohibiting cash withdrawals from the account;
  (b) before funds are transferred from the account to another account there must be written supporting documentation for the transfer and an ABM record of the transfer must be produced; and
  (c) the record is reviewed, signed and dated by the broker or by a person authorized by the broker on the date of the transfer or the next business day.
85(2) A brokerage shall not make an electronic transfer using Internet banking from an account in which money is held in trust unless:
  (a) there is written supporting documentation;
  (b) a printed record providing details of the Internet transfer is produced; and
  (c) the printed record is reviewed, signed and dated by the broker or an authorized person on the date of the transfer or the next business day.
    Oct 1/06

Bank Reconciliation
86(1) A brokerage shall prepare a bank reconciliation monthly, within 30 days of the date of the prior month’s bank statement, for all accounts in which money is held in trust.
86(2) As part of a bank reconciliation a brokerage shall:
  (a) identify the balances owing to each client or customer held in trust; and
  (b) reconcile monthly the trust liability to the reconciled bank balance as of the date of the bank reconciliation.
86(3) The broker must review the monthly reconciliation under (1) above within 30 days of the date of the prior month’s bank statement, and acknowledge the review by signing and dating the monthly reconciliation.
  Oct 1/06, Resolution 2010-1

Negative Trust Balance Prohibited
87 A brokerage shall not make any payment or allow a bank transfer out of an account in which money is held in trust if the payment or transfer would create a negative balance in a client’s or customer's ledger.
  Oct 1/06, Resolution 2010-1

Trust Shortage Must be Funded
88 If at any time there is a shortage of money in an account in which money is held in trust, the brokerage shall deposit the brokerage’s own money into the account as soon as the amount of the shortage is determined.
  Oct 1/06

Notification of Trust Shortage
89(1) If a brokerage is aware there is a trust shortage, the amount of which has not been determined, the broker must notify the executive director in writing of the existence of a trust shortage and what steps are being taken to determine the amount of the shortage.
89(2) If a brokerage cannot immediately fund a trust shortage, the broker must notify the executive director in writing of the amount of the trust shortage and what corrective action the brokerage will be taking.
  Oct 1/06

Year End Report
90 A brokerage shall report to Council at the brokerage’s fiscal year end with regard to the operation of its accounts in which money is held in trust.
  Oct 1/06

Brokerage Accounting
91(1) If a brokerage receives or holds money on the account of others, in the course of its business, the brokerage’s accounting for the purposes of section 90 shall consist of the Brokerage’s Representations to the Council and an Accountant’s Report, both in a form and containing the information required by the executive director.
91(2) The Accountant’s Report must be completed by a chartered accountant, certified general accountant or certified management accountant.
91(3) The Accountant’s Report shall be prepared pursuant to an Engagement Letter between Accountant and Client, in a form and containing the information required by the executive director.
91(4) A brokerage’s accounting shall be filed with the Council not later than 3 months after the end of the brokerage’s fiscal year and shall cover the fiscal year or, where the brokerage did not carry on business for the entire fiscal year, that part of the fiscal year for which the brokerage carried on business.
91(5) In preparing the Accountant’s Report, the accountant shall comply with the guidelines prescribed by the executive director.
  Oct 1/06

Absence of Trust Transactions
92(1) For the proposes of reporting under section 90, a brokerage that has not received or held money on the account of others in the course of its business shall file with the Council a Declaration Respecting Absence of Trust Transactions in a form and containing the information required by the executive director not later than 3 months after the end of the brokerage’s fiscal year.
92(2) The Declaration Respecting Absence of Trust Transactions shall cover the fiscal year or, where the brokerage did not carry on business for the entire fiscal year, that part of the fiscal year for which the brokerage carried on business.
  Oct 1/06


Continue with Part 3 Division 2 - Requirements for Real Estate Brokerages

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