Afraid of an Audit?
Eliminate worry by being prepared. It will make a positive difference if you regularly monitor the activities of your affiliated licensees and keep a close eye on their files.
In case you missed the latest newsletter from the Kansas Real Estate Commission here is a recap of the most common violations they find. Fortunately the first two are already provided for in your KCRAR Residential Resale contract.
The most common violations found are:
· Failure to include brokerage relationships disclosure in the purchase contract
· Failure to include radon gas disclosure or KBI offender registration in the contract
· Failure to obtain purchase agreement receipt and earnest money receipt from the third party escrow agent and include it in the transaction file
· Failure to correctly assign transaction numbers
· Failure to close transaction by the date specified in the contract
Speaking of audits, do you regularly check the licensed status of your agents? There are numerous cases of agents renewing late or failing to renew their license at all. Yet they continue to show and/or sell property when they are not licensed! The Supervising Broker’s failure to supervise the activities of affiliated licensees would certainly fall into a disciplinary category. As Missouri renewal approaches remember that a license is not effective until it is actually returned from the state. Those who wait to renew close to the deadline may jeopardize their ability to show and sell because there isn’t enough time for the renewal to be processed and the license returned. When October 1st rolls around many brokers will be checking the MREC website to research who is licensed on that date… or who is not.
For more information regarding Kansas audits click here. For Missouri audits click here.