When you take that first job in a real estate brokerage, it's important that you understand exactly what you are supposed to have on file for each transaction. This is a vital part of your job, because overlooking documents can be a costly mistake in the event of an audit. As part of a brokerage, one of the most important documents for your property sales is a trade record sheet. You must have one completed for every property transaction. Since there is no single standard form, these are typically only briefly addressed in classes, so you'll need a better understanding of them to use them on the job. Here's a look at what you need to know about these documents.
An Overview Of the Trade Record Sheet
There is no single standard form for trade record sheets. As long as the forms have all of the required information, your brokerage can create a template that's unique to you. In fact, most brokerage firms have their own sheets that they use for this purpose. If not, you are welcome to create a report template of your own. Just keep in mind that your template must be complete no matter which one you use.
What Has To Be Included On The Report?
When you create your own trade record sheet template, start by making sure you cover all of the requirements. You need to detail the nature of the transaction, whether it's a sale, lease or any other transaction. The report should also include a complete description of the physical attributes of the property, including the address and any physical structures found on the land. It should be easy to recognize the property based on the information provided on the report, so try to include as much specific detail as possible, including sketches, aerial photos and other documentation.
Each report should be awarded an identification number. That number will be used to track the sale, and it should be recorded on the trade record sheet. You'll also want to include the sale price as well as the contact information for both the buyer and the seller. Add details of the payment transactions, too. If the payments are made in installments, include information about each installment as it is received. The goal is to be able to tell at a glance exactly what has happened with the transaction and when it happened.
For lease properties, you need to detail the lease agreement along with any information available about the lessor, the lessee and any other parties involved. List the term of the lease, the monthly rate and the deposits required at the time of the signing. Include details about any deposit returns when they happen, too.
When Are Trade Record Sheets Necessary?
You have to fill out a trade record sheet for every transaction in which your brokerage holds or receives funds for any property transaction. The forms are required to be filed with the remaining documentation for the transaction.
Don't make the mistake of thinking that the financial information on the trade record sheet is all you need for your sale record. The fact is that it's only one of the required documents you'll have to have for the file. You'll also have to include the property evaluation, the financial statements and the escrow information for the sale. The financial details included on the trade record sheet are merely supplemental, not intended to replace any other document.
As a new employee of a real estate brokerage, the paperwork requirements can be daunting. Don't let a misunderstanding or an overlooked document leave you facing an audit and disciplinary action. Instead, with the information here, you can fully understand what is required of the trade record sheet for each of your property sales. Talk with your brokerage partners today to make sure that you understand the firm's expectations.
Contact a professional like Aaron Lillie - Real Estate Sales Representative to learn more.Share
22 June 2016
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