RECO Bulletin 8.2 Shortfalls and missing property

Effective December 1, 2023

This bulletin explains the brokerage’s obligations related to shortfalls in the real estate trust account and missing property held in trust.

Shortfalls

If a brokerage determines that there is a shortfall in its real estate trust account, the brokerage must immediately:

1. Notify RECO of the shortfall; and,
2. Deposit sufficient funds in the account to eliminate the shortfall.

Shortfalls arising from financial institution service fees

Where the shortfall results from financial institution service fees, a brokerage is not required to notify RECO as long as the shortfall is eliminated as soon as it is discovered.

Missing property

A brokerage must keep a written record of having received the property that is not money and that comes into the brokerage’s hands in trust for other persons in connection with the brokerage’s business. A brokerage must also maintain records of every transaction relating to the property held in trust.

If a brokerage determines that some or all of the property that is not money is missing, the brokerage must immediately:

1. Notify RECO of the missing property; and,
2. Replace the missing property.

Related information

Bulletin No. 8.1 Unclaimed money in the real estate