A Broker's Guide to Complying with State Regulations
By Debra Peterson Conrad, Wisconsin REALTORS® Association, and Scott C. Minter,
UW Law School
2010 Edition; 99 pages; $22.00 Publications Order Form
Real Estate Trust Accounts in Wisconsin is a product of the cooperative relationship between the Law School and the Wisconsin REALTORS® Association. The authors are Debra Peterson Conrad from the Wisconsin REALTORS® Association and Scott C. Minter from the UW Law School. The goal of this publication effort is to provide real estate licensees with a clear, concise, and practical explanation of a broker's duty to handle trust funds in conformance with procedures established by the Department of Regulation and Licensing. This handbook identifies problems that arise in a real estate transaction regarding earnest money and other types of trust funds and suggests ways to comply with the trust account regulations enforced by the Department.
The handbook explains the duty of a broker to account for money he or she receives or disburses on behalf of a party to a real estate transaction. The first part of the handbook explains the rules of the Department of Regulation and Licensing for accounting of trust funds. The second part explains record keeping requirements of the Department to ensure that trust funds are properly held and accounted for after disbursement. Samples of bookkeeping forms are included to help brokers develop a professional bookkeeping system that complies with Department rules.
The 2010 edition completely updates each chapter in the prior edition (2007) to reflect current issues and the recent adoption of the new standard residential offer-to-purchase (WB-11). The text incorporates relevant portions of the new WB-11 that relate to trust accounts. These updates continue the book's reputation as an up-to-date, practical resource for professionals involved in residential real estate transactions.
Chapter 1 Introduction
Chapter 2 What Are Trust Funds?
Chapter 3 Account Requirements
Chapter 4 Handling Trust Deposits and Disbursements
Chapter 5 Disbursing Earnest Money
Chapter 6 Property Management Trust Funds
Chapter 7 The Bookkeeping System
Chapter 8 Step 1: The Cash Journal
Chapter 9 Step 2: The Ledger
Chapter 10 Steps 3, 4, and 5: Account Reconciliation, Trial Balance, and Validation of Account
Chapter 11 Computerized Trust Accounting
Chapter 12 Trust Account Problem Areas for the Broker
Chapter 13 Who is Responsible for Handling Trust Account Funds?
Chapter 14 Retaining Trust Account Records
Chapter 15 A Review of the Legal Requirements for Trust Accounts
- Sample Cash Journals
- Computer-Printed Cash
- Sample Ledgers
- Broker's Funds
- Rental Ledger
- Sample Reconciliation
- Sample Trial Balance
- Setup Class
- Reconciled Bank Statement
- Reconciliation Report Setup
- Monthly Reconciliation
- Customized Transaction Report
- Trial Balance Report
- Memorize Report
- Journal Pages Report
- Ledger Pages Report