AN
ACT Relating to real estate broker's records; and amending RCW 18.85.310.
BE IT ENACTED BY THE
LEGISLATURE OF THE STATE OF WASHINGTON:
Sec.
1. RCW
18.85.310 and 1995 c 399 s 7 are each amended to read as follows:
(1)
Every licensed real estate broker shall keep adequate records of all real
estate transactions handled by or through the broker. The records shall
include, but are not limited to, a copy of the earnest money receipt, and an
itemization of the broker's receipts and disbursements with each transaction.
These records and all other records hereinafter specified shall be open to
inspection by the director or the director's authorized representatives.
(2)
Every real estate broker shall also deliver or cause to be delivered to all
parties signing the same, at the time of signing, conformed copies of all
earnest money receipts, listing agreements and all other like or similar
instruments signed by the parties, including the closing statement.
(3)
Every real estate broker shall also keep separate real estate fund accounts in
a recognized Washington state depositary authorized to receive funds in which
shall be kept separate and apart and physically segregated from licensee
broker's own funds, all funds or moneys of clients which are being held by such
licensee broker pending the closing of a real estate sale or transaction, or
which have been collected for said client and are being held for disbursement
for or to said client and such funds shall be deposited not later than the
first banking day following receipt thereof.
(4)
Separate accounts comprised of clients' funds required to be maintained under
this section, with the exception of property management trust accounts, shall
be interest-bearing accounts from which withdrawals or transfers can be made
without delay, subject only to the notice period which the depository
institution is required to reserve by law or regulation.
(5)
Every real estate broker shall maintain a pooled interest-bearing escrow
account for deposit of client funds, with the exception of property management
trust accounts, which are nominal. As used in this section, a
"nominal" deposit is a deposit of not more than ((five)) ten
thousand dollars.
The
interest accruing on this account, net of any reasonable and appropriate
financial institution service charges or fees, shall be paid to the state
treasurer for deposit in the Washington housing trust fund created in RCW 43.185.030
and the real estate education account created in RCW 18.85.317. Appropriate
service charges or fees are those charges made by financial institutions on
other demand deposit or "now" accounts. An agent may, but shall not
be required to, notify the client of the intended use of such funds.
(6)
All client funds not required to be deposited in the account specified in
subsection (5) of this section shall be deposited in:
(a)
A separate interest-bearing trust account for the particular client or client's
matter on which the interest will be paid to the client; or
(b)
The pooled interest-bearing trust account specified in subsection (5) of this
section if the parties to the transaction agree.
The
department of licensing shall promulgate regulations which will serve as
guidelines in the choice of an account specified in subsection (5) of this
section or an account specified in this subsection.
(7)
For an account created under subsection (5) of this section, an agent shall
direct the depository institution to:
(a)
Remit interest or dividends, net of any reasonable and appropriate service
charges or fees, on the average monthly balance in the account, or as otherwise
computed in accordance with an institution's standard accounting practice, at
least quarterly, to the state treasurer for deposit in the housing trust fund
created by RCW 43.185.030 and the real estate education account created in RCW
18.85.317; and
(b)
Transmit to the director of community, trade, and economic development a
statement showing the name of the person or entity for whom the remittance is
spent, the rate of interest applied, and the amount of service charges
deducted, if any, and the account balance(s) of the period in which the report
is made, with a copy of such statement to be transmitted to the depositing
person or firm.
(8)
The director shall forward a copy of the reports required by subsection (7) of
this section to the department of licensing to aid in the enforcement of the
requirements of this section consistent with the normal enforcement and
auditing practices of the department of licensing.
(9)
This section does not relieve any real estate broker from any obligation with
respect to the safekeeping of clients' funds.
(10) Any violation by a real estate broker of any of the provisions
of this section, or RCW 18.85.230, shall be grounds for revocation of the
licenses issued to the broker.
