Few employers would disagree that among their most valuable employees is the person who maintains their company's financial records. In the case of real estate brokerage firms, this position takes on special significance since this person is also generally charged with maintaining the firm's trust account.
But while the Broker-In-Charge of a real estate office may delegate to a bookkeeper, secretary or other clerical employee the day-to-day responsibility for maintaining their firm's trust account, nevertheless the broker will not be relieved of liability in the event the funds are embezzled or otherwise misappropriated by such employee.* Several incidents of embezzlement of trust funds by unlicensed employees have been discovered by the Commission in recent months
For this reason, it is the position of the Real Estate Commission that those persons who maintain records pertaining to the deposit and disbursement of trust funds and who have access to such funds should be bonded. The Commission also advises Brokers-in-Charge to closely supervise the activities and work of such persons and, if necessary, to arrange for periodic audits of the records by a qualified, independent accountant
The Commission will be closely monitoring this situation to determine if further action is warranted.
*Rule .0110 Designated Broker
"There shall be designated for each real estate firm and branch office thereof one duly licensed real estate broker who shall assume responsibility for . . . the proper maintenance at such office of the trust or escrow account of the firm and records pertaining thereto."