What is RECA's authority regarding trust account audits?
Correct Answer
C) RECA has authority to audit brokerage trust accounts at any time
Under the Real Estate Act, RECA has the authority to audit brokerage trust accounts at any time, whether prompted by a complaint or as part of routine compliance monitoring. These audits verify that client funds are properly safeguarded, correctly accounted for, and not commingled with the brokerage's operating funds.
Why This Is the Correct Answer
Under the Real Estate Act, RECA has authority to audit brokerage trust accounts at any time, whether prompted by a complaint or as routine compliance monitoring. Auditors verify proper handling, accounting, and safeguarding of client funds. Brokerages must maintain accurate records and cooperate with RECA audits. Non-compliance can result in severe sanctions including licence cancellation.
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