RECO Brokerage Inspection: Financial Records Readiness Checklist
A practical bookkeeping checklist for Ontario brokerages preparing for inspection, maintaining monthly trust controls, or organizing records for RECO’s new annual financial filing.
Keep the trust-account, trade-record and bookkeeping trail current enough that requested records can be produced without rebuilding the file during the inspection itself.
What RECO is seeing in 2026
RECO reported that between January and March 2026 it completed 433 brokerage inspections and identified 2,018 deficiencies. The most frequent area was monthly reconciliation, followed by trade record sheets, trust-account maintenance, account designation, and several other operational requirements.
RECO’s current brokerage guidance says the broker of record must review, sign and date monthly real estate trust account reconciliations within 30 days after month-end. It also emphasizes that records requested for inspection should already be readily available.
Scope note: This is a financial-record readiness guide, not legal advice or a substitute for RECO’s current requirements. Taxxel provides bookkeeping and records support; it does not conduct inspections or certify compliance.
Six record groups to review before an inspection
The exact RECO request controls what must be produced. This checklist helps identify whether the bookkeeping file is ready or needs work.
Monthly reconciliation file
Reconciliation statement, bank statement, book balance, outstanding items, explanations, and evidence of broker-of-record review.
Real Estate Trust Account records
Account designation, deposits, withdrawals, authorization support, bank activity, and records showing trust funds remain separate from brokerage money.
Trust-money transaction records
A clear trail showing money received, the related trade, deposit timing, disbursement, and supporting documents.
Trade record sheets and transaction files
Complete records for each trade, including the financial information and documents relevant to deposits and brokerage accounting.
Shortfall and discrepancy records
Any difference identified through reconciliation should have a documented investigation, correction, and supporting trail.
Annual financial filing working file
Beginning October 1, 2026, maintain an organized working file for the information and documentation needed for RECO’s annual financial filing.
The reconciliation should connect five points
A useful monthly file should make it possible to follow trust activity from the bank through the brokerage records and into the review performed by the broker of record.
Use a simple status system to manage the file
What changes on October 1, 2026?
RECO has announced that all Ontario brokerages will be required to submit an annual financial filing beginning October 1, 2026. RECO says the measure is designed to provide regular financial oversight alongside its inspection and audit work.
That new filing does not replace ongoing bookkeeping duties. A brokerage still benefits from maintaining monthly reconciliations, trust-money records, and transaction support as normal operating records rather than assembling them only when requested.
Need the bookkeeping file organized before a RECO review?
Taxxel can help assess the records, bring bookkeeping current, prepare trust-account reconciliation working files, and organize financial documents for brokerage leadership to review.