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Guidelines for electronic storage of documents

KREC

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Transaction Files:
Each transaction file whether PENDING, CLOSED, FAILED, or CANCELED must be indexed by TIN and by client or customer name. 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 and shall be retained for a period of 3 years:

  • 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. These records would need to be scanned into a system by indexing each with a TIN and client or customer name.

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.

3. This software must be updated periodically so that records are always readable.

4. The system should be in a format that once scanned documents may not be altered at a later time.

5. The original contract should be scanned to ensure a clear scan. K.A.R. 86-3-10 states that the broker must have true copies in the broker's files.

6. Contracts that have been faxed back and forth are sometimes reduced to the point that printed language is unreadable and would not be allowed as a true copy of the original contract.

7. Brokers would need to monitor the scanning process before shredding the original to make sure they have a clear scan.


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phone: 785.296.3411 - fax: 785.296.1771 - email: krec@krec.state.ks.us

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