Rhode Island Code of Regulations › Title 230 - Department of Business Regulation › Chapter 30 - Commercial Licensing › Subchapter 20 - Real Estate › Part 2 - Real Estate Brokers and Salespersons › Section 230-RICR-30-20-2.20 - Records

Current through June 14, 2024
A. Every principal broker shall ensure that
				  his or her affiliated licensees keep records of all funds and property of
				  others received by him or her for not less than three (3) years from the date
				  of receipt of any such funds or property.
B. A licensee shall maintain and retain
				  records sufficient to identify the ownership of all funds belonging to others
				  and the property associated with those funds. Such records shall be sufficient
				  to show proper deposit of such funds in an escrow account and to verify the
				  accuracy and proper use of the escrow account. The required records shall
				  include:
1. Bank statements
2. Canceled checks. Checks shall
				  conspicuously identify the payee and shall bear a notation identifying the
				  purpose of the disbursement. When a check is used to disburse funds for more
				  than one (1) sales transaction, owner, or property, the check shall bear a
				  notation identifying each sales transaction, owner, or property for which
				  disbursement is made, including the amount disbursed for each, and the
				  corresponding sales transaction, property, or owner ledger entries. In lieu of
				  retaining canceled checks, a licensee may retain digitally imaged copies of the
				  canceled checks or substitute checks provided that such images are legible
				  reproductions of the front and back of such instruments with no smaller images
				  than 1.1875 x 3.0 inches and provided that the licensee's bank retains for a
				  period of at least six (6) years the original checks, or the capacity to
				  provide substitute checks and makes the original or substitute checks available
				  to the licensee and the Department upon request.
3. Journal or check stubs. A journal or check
				  stubs shall identify in chronological sequence each bank deposit and
				  disbursement of monies to and from the escrow account, including the amount and
				  date of each deposit and a reference to the corresponding deposit ticket and
				  any supplemental deposit worksheet, and the amount, date, check number, and
				  purpose of disbursements and to whom paid. The journal or check stubs shall
				  also show a running balance for all funds in the account.
4. Copies of contracts, leases and management
				  agreements
5. Closing statements
				  and property management statements
6. Other documents. Invoices, bills, and
				  contracts paid from the escrow account, and any documents not otherwise
				  described herein necessary and sufficient to verify and explain record entries.
				  Records of all receipts and disbursements of escrow monies shall be maintained
				  in such a manner as to create an audit trail from deposit tickets and canceled
				  checks to check stubs or journals and to the ledger sheets. Ledger sheets and
				  journals or check stubs must be reconciled to the escrow account bank
				  statements on a monthly basis. To be sufficient, records of escrow monies must
				  include a worksheet for each such monthly reconciliation showing the ledger
				  sheets, journals or check stubs, and bank statements to be in agreement and
				  balance.