REEB 18.09(3)(b)
(b) A firm providing property management services shall disburse the fee earned for providing property management services as a regular monthly basis unless otherwise agreed in a written property management agreement signed by the parties to that agreement.
REEB 18.09 History
History: Cr.
Register, April, 1981, No. 304, eff. 5-1-81; renum. from REB 9.09 and am. (3) (intro.),
Register, February, 1983, No. 326, eff. 3-1-83; am. (2), (3) (a) and (b) and (4),
Register, June, 1984, No. 342, eff. 7-1-84; r. and recr.,
Register, July, 1993, No. 451, eff. 8-1-93; renum. (3) to be (3) (a), cr. (3) (b),
Register, August, 1994, No. 464, eff. 9-1-94;
CR 13-072: am. (1) (intro.), (a) to (f)
Register May 2014 No. 701, eff. 7-1-14;
EmR1620: emerg. am. (1) (intro.), (2), (3), eff. 7-1-16; CR 16-042: am. (1) (intro.), (2), (3) Register February 2017 No. 734, eff. 3-1-17. REEB 18.10
REEB 18.10 Comingling funds prohibited. REEB 18.10(1)(1)
Depositable funds. A firm shall deposit only real estate trust funds in the firm's real estate trust account.
REEB 18.10(1)(a)
(a) Except for
sub. (b), a firm shall not commingle personal funds or other funds in the real estate trust account.
REEB 18.10(1)(b)
(b) A firm may deposit and maintain a sum not to exceed $300.00
from personal funds in any real estate trust account. Such sum shall be specifically identified and deposited to cover service charges relating to the real estate trust account.
REEB 18.10(2)
(2) Additional funds. A firm shall deposit additional personal funds in sums consistent with
sub. (1) (b) in the firm's real estate trust account within 10 business days following receipt of a statement or other notification from a depository institution that a service charge has been made against the account for which insufficient personal funds are available in the real estate account.
REEB 18.10 History
History: Cr.
Register, April, 1981, No. 304, eff. 5-1-81; renum. from REB 9.10,
Register, February, 1983, No. 326, eff. 3-1-83; am.
Register, July, 1984, No. 342, eff. 7-1-84; am.
Register, January, 1992, No. 433, eff. 2-1-92; am.
Register, August, 1994, No. 464, eff. 9-1-94;
CR 13-072: r. and recr.
Register May 2014 No. 701, eff. 7-1-14;
EmR1620: emerg. am., eff. 7-1-16; CR 16-042: am. Register February 2017 No. 734, eff. 3-1-17. REEB 18.11
REEB 18.11 Non-depositable items. A firm shall not hold any instrument, equity or thing of value which is not depositable in a real estate trust account. Non-depositable items shall be held by one of the parties to a transaction or some other party, subject to an escrow agreement prepared by the parties or an attorney.
REEB 18.11 History
History: Cr.
Register, April, 1981, No. 304, eff. 5-1-81; renum. from REB 9.11,
Register, February, 1983, No. 326, eff. 3-1-83; am.
Register, August, 1994, No. 464, eff. 9-1-94; correction in (2) (a) made under s.
13.92 (4) (b) 7., Stats.,
Register November 2011 No. 671;
CR 13-072: (1) renum. REEB 18.11, r. (2)
Register May 2014 No. 701, eff. 7-1-14;
EmR1620; Emerg. am., eff. 7-1-16; CR 16-042: am. Register February 2017 No. 734, eff. 3-1-17.
REEB 18.13
REEB 18.13 Bookkeeping system. Each firm shall maintain and be responsible for a bookkeeping system in the firm's office consisting of at least the following:
REEB 18.13(1)
(1) Cash journal. A firm shall maintain a record, called a journal showing the chronological sequence in which real estate trust funds are received and disbursed as follows:
REEB 18.13(1)(a)
(a) For funds received, the journal shall include at least the date, the name of the party providing the money, and the amount.
REEB 18.13(1)(b)
(b) For disbursements, the journal shall include at least the date, the payee, the number of the check, share draft, or draft, and the amount.
REEB 18.13(1)(c)
(c) The journal shall identify each transaction by including at least the name of the principal, an identification number or other means of identification linking the journal to the transactions and the ledger described in
sub. (2).
REEB 18.13(1)(d)
(d) The journal shall include a running balance for each day on which receipts or disbursements are entered.
REEB 18.13(2)
(2) Ledger. A firm shall maintain a record including the receipts and the disbursements as they affect each particular transaction, including transactions between buyer and seller, landlord and tenant, etc. The ledger entry shall include the names of all parties to a transaction, the dates and the amounts received and the name of the party or parties providing the money if different from the buyer. Ledger entries shall include at least the date, payee, number of the check, share draft or draft and amount when funds are disbursed. The ledger shall include a running balance and segregate each transaction. The firm shall maintain a separate ledger or separate section of the ledger for each of the various kinds of real estate transactions, including sales, rental collections, or mortgage and land contract collections.
REEB 18.13(3)
(3) Account reconciliation. The firm or a person designated by the firm shall reconcile the real estate trust account or accounts in writing each month except in the case where there has been no activity during the month. The written reconciliation shall include at least the ending account statement balance, the date and amounts of the deposits in transit, the number of the check, share draft, or draft, and amount of checks, share drafts, or drafts written but not paid by the depository institution as of the ending date shown on the account statement to be reconciled, and the reconciled account statement ending balance.
REEB 18.13(4)
(4) Trial balance. The firm shall prepare or have prepared, in conjunction with
sub. (3), a written listing of all open items in the real estate trust account. The written listing shall be referred to as the “trial balance”. The listing shall include at least the names of all parties to the transaction and the amount held in trust for the parties at the time corresponding to the account reconciliation. The firm may in lieu of the names of the parties to the transaction substitute the ledger page number or other means of identification from the ledger to label the funds in the trial balance.
REEB 18.13(5)
(5) Validation. The firm or a person designated by the firm shall review the reconciled account statement balance, the open ledger account listing, and the journal running balance to ensure that all of these records are valid and in agreement as of the date the account statement has been reconciled.
REEB 18.13(6)
(6) Use of computers. A computerized system may be used to maintain the firm's bookkeeping system if:
REEB 18.13(6)(b)
(b) All bookkeeping entries required by this chapter are made in the computerized system, even if other records are being simultaneously maintained.
REEB 18.13(6)(c)
(c) A backup copy of the bookkeeping records required under
subs. (1) to
(2) is made on any day on which entries are made in the computerized bookkeeping system. The backup copy shall be made on a disk or other medium which is separate and distinct from that on which the source documents reside.
REEB 18.13(6)(d)
(d) After complying with
subs. (3) to
(5), the document which records the account reconciliation, trial balance and validation is immediately copied to a backup medium and maintained by the broker.
REEB 18.13(6)(e)
(e) All records shall be made available for inspection and copying by the department and exact and completed copies promptly sent to the department upon the request of the department without charge to the department or board for the purposes of an audit or investigation.
REEB 18.13 History
History: Cr.
Register, April, 1981, No. 304, eff. 5-1-81; renum. from REB 9.13,
Register, February, 1983, No. 326, eff. 3-1-83; am. (intro.), (1) (b), (2) to (5),
Register, June, 1984, No. 342, eff. 7-1-84; am. (1) (intro.), (a) and (b), (2) and (4), renum. (1) (c) to be (1) (d), cr. (1) (c) and (6),
Register, August, 1994, No. 464, eff. 9-1-94; correction in (6) (f) made under s.
13.92 (4) (b) 7., Stats.,
Register November 2011 No. 671;
CR 13-072: am. (1) to (4), (6) (e)
Register May 2014 No. 701, eff. 7-1-14;
EmR1620: emerg. am. (intro.), (1) (intro.), (2) to (5), (6) (intro.), (e), eff. 7-1-16; CR 16-042: am. (intro.), (1) (intro.), (2) to (5), (6) (intro.), (e) Register February 2017 No. 734, eff. 3-1-17. REEB 18.14
REEB 18.14 Violation of rules. A firm who fails to comply with the rules in this chapter shall be considered to have demonstrated incompetency to act as a licensed individual broker or a licensed broker business entity in a manner as to safeguard the interests of the public, as specified in s.
452.14 (3), Stats.
REEB 18.14 History
History: Cr.
Register, April, 1981, No. 304, eff. 5-1-81; renum. from REB 9.14 and am.
Register, February, 1983, No. 326, eff. 3-1-83; am.
Register, June, 1984, No. 342, eff. 7-1-84;
EmR1620: emerg. am., eff. 7-1-16; CR 16-042: am. Register February 2017 No. 734, eff. 3-1-17.
