Lone Wolf Business Tips is a series of business ideas and concepts that are designed to advise a manager or broker/owner on quick actions that can have a significant benefit in a real estate brokerage operation.
When it comes right down to it, the broker is responsible for the trust account. It is amazing to imagine how many brokers run a business with so much money changing hands, agents coming and going, and yet, they fail to spend 30 minutes a month checking over their trust account.
The Pay Me List
Holding trust money is an immense responsibility and one, if not done properly, that can literally force an office to close their doors. It is important each month to track the coming and going of trust funds but ultimately know who owns every dollar in your trust account. Think of it this way, if you were to close your doors today and had to refund all trust money, would you know which buyer and transaction the money belongs to? If the buyers were lined up outside your door would you have enough at the end? Would you have too much?
Your monthly bank reconciliation should not only show you your banking information, outstanding checks and deposits, but also a list of money you are holding – the pay me list. This list should be for all current pending transactions.
Not Just About the Money
In many states and provinces, there are a lot of different rules that a broker must follow, and also have his or her agents follow. You need to know what these guidelines entail. Is your paperwork for the files complete? Are all the agents’ licenses active and up to date? Are standards for advertising on business card, flyers, newspapers, being met? At the end of the day it’s your company’s reputation and very life that is in your hands.
Latest posts by Wolf Pack (see all)
- 5 ‘Non-Real Estate’ Books That Can Make You Better at Selling Real Estate - May 25, 2017
- Vector Images: What are they and why do you need to use them? - May 23, 2017
- Why You Should Always Add Value – and How to Do it - May 18, 2017