As reflected in the Disciplinary Action summaries in this "Bulletin" violations of the laws and rules governing the maintenance of trust and escrow accounts remain the number one cause for real estate license suspensions, revocations and reprimands. Whether through ignorance, negligence or intentional misappropriation or embezzlement, the impact on clients and customers is the same—financial loss. Consequently, the Commission considers an count violations to be serious.
To help Brokers-ln-Charge and their bookkeepers to better understand their obligations and the requirements for maintaining trust funds and trust account records, the Commission has published "Trust Account Guidelines" which are furnished to all persons preparing for real estate license examinations, and are available upon request to ail licensees without charge. In addition, since 1982 the Commission has offered free "Trust Account Short Courses" to interested licensees and their bookkeepers. These courses are conducted each month in Raleigh and once a year at different locations across the State. More than 5,500 persons have attended and benefited from these half-day courses. Brokers-ln-Charge and other licensees who find themselves in situations requiring an immediate response to a question concerning trust or escrow funds may also write or can the Commission office for guidance.
Yet, despite the Commission's best efforts to prevent trust account violations and abuses, the Commission once continues to receive numerous complaints, and the Commission's auditing and investigative staff uncover many other incidents often while investigating totally unrelated matters.
Because of the continuing problems which the Commission is encountering and the serious threat that trust account violations pose to real estate consumers, the Commission has directed its Trust Account Auditors and Investigators to perform more random trust account audits. The Real Estate License Law permits the Commission to inspect the trust account records of real estate brokers "without prior notice ' and failure to make such records available to the Commission or one of its representatives is grounds for disciplinary action..
Brokers-ln-Charge are, therefore, strongly advised to carefully review their trust account and transaction records to assure that they are being maintained in accordance with the License Law and Commission rules so that you will be prepared should a Commission Auditor or Investigator visit your office.