DEPARTMENT OF LICENSING

[Filed June 13, 2024, 11:08 a.m., effective July 14, 2024]

Effective Date of Rule: Thirty-one days after filing.

Purpose: The department of licensing (DOL) is considering rule making to provide clarity to real estate brokers concerning required documentation maintenance.

Citation of Rules Affected by this Order: Amending WAC 308-124C-105 Required records.

Statutory Authority for Adoption: RCW 18.85.041 Director—General powers and duties.

Adopted under notice filed as WSR 24-09-085 on April 17, 2024.

Changes Other than Editing from Proposed to Adopted Version: DOL accepted language suggestions submitted by Washington realtors. This was not a substantive change, but simply altered the location of the language to improve readability.

Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 0, Amended 1, Repealed 0.

Number of Sections Adopted at the Request of a Nongovernmental Entity: New 0, Amended 0, Repealed 0.

Number of Sections Adopted on the Agency's own Initiative: New 0, Amended 0, Repealed 0.

Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 0, Amended 0, Repealed 0.

Number of Sections Adopted using Negotiated Rule Making: New 0, Amended 1, Repealed 0; Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 0, Amended 0, Repealed 1.

Date Adopted: June 13, 2024.

Rules and Policy Manager

AMENDATORY SECTION(Amending WSR 14-16-054, filed 7/29/14, effective 8/29/14)

WAC 308-124C-105Required records.

The designated broker is required to keep the following on behalf of the firm:

(1) Trust account records:

(a) Duplicate receipt book or cash receipts journal recording all receipts;

(b) Sequentially numbered, nonduplicative checks with check register, cash disbursements journal or check stubs;

(d) Client's accounting ledger summarizing all moneys received and all moneys disbursed for each real estate or business opportunity transaction or each property management account, contract or mortgage collection account;

(e) In conjunction with (d) of this subsection, separate ledger sheets for each tenant (including security deposit), lessee, vendee or mortgagor; for automated systems, the ledger sheets may be a computer generated printout which contains required entries;

(f) Reconciled bank statements and canceled checks for all trust bank accounts.

(2) Other records:

(a) An accurate, up-to-date log of all agreements or contracts for brokerages services submitted by the firm's affiliated licensees.

(b) A legible copy of the transaction or contracts for brokerage services shall be retained in each participating real estate firm's files.

(c) A transaction folder containing all agreements, receipts, contracts, documents, leases, closing statements, broker price opinions, referral agreements, and material correspondence, for each real estate or business opportunity transaction, and for each rental, lease, contract or mortgage collection account.

(d) All required records shall be maintained at one location where the firm is licensed. This location may be the main or any branch office.