Achieve Inspection Readiness and Effectiveness with Your Real Estate Companion Called UrAudits

December 7 , 2023

Real estate inspections can be challenging and overwhelming, particularly when caught unprepared. Therefore, it’s imperative always to be one step ahead. It is essential to preserve well-organized documentation in advance and use an auditing application for real estate, guaranteeing preparedness when the audit manager contacts you.

Regardless of the size of your real estate business, executing efficient recording, compliance, and record-keeping methods is vital. By integrating the audit app, you can accomplish real peace of mind. Going beyond the minimum state prerequisites and being one step ahead allows you to minimize stress and eliminate the requirement for last-minute scrambling to prepare for routine audits.

Our app’s real-time incident reporting feature lets you carry out regular organizational operations smoothly without wasting time organizing files and records during an audit. By proactively planning audits and utilizing technological tools, you can make inspections more manageable while demonstrating your commitment to maintaining high compliance standards and knowledge in the real estate industry.

What Is a Real Estate Audit?

A real estate audit is a check to ensure your brokerage complies with all relevant local, state, and federal laws.

Examining the company’s financial transactions and assessing its transaction management systems, documentation, and records are essential for the audit.

Financially, the audit confirms every cash received and disbursed throughout the audit period, whether from sales, revenue, or outside investments.

Moreover, the audit process guarantees that transactions comply with the particular real estate regulations applicable to your organization’s location. This necessitates preserving record-keeping to meet the required standard.

To enhance compliance and be prepared for audits, embracing an internet-based transaction management auditing application for real estate is recommended. Look for characteristics such as transaction history logs to track document reviews and automatically gives an extensive audit trail.

Real estate inspections usually occur during a specific period, often aligned with a single fiscal year. Trained auditors collect relevant documents and meticulously confirm their accuracy and compliance.

Real estate firms may undergo routine audits, with the frequency varying depending on their location. Some states follow transparent audit schedules, while different do not have predefined timelines.

Sometimes, brokerages may undergo an unexpected audit due to client complaints or other reasons. Despite the circumstances, the audit process is similar to a planned one.

Why Are Audits Important?

Real estate inspections are essential for your business. Your broker’s license relies on compliance with regulations to evade financial and legal risks. Audit failure can be catastrophic, but corrective actions may offer specific protection. Act early to guarantee audit compliance. Observe the rules set forth by your state’s real estate department, such as the Arizona Department of Real Estate. Create a checklist of requirements for brokerage and agent compliance.

Keep reading on for transaction checklist tips.

How a Real Estate Inspection Performs?

A real estate audit process can vary slightly depending on the state but commonly follows a similar structure. Here’s an overview of how a typical real estate audit works:

• Notification: The Department of Real Estate, responsible for regulating real estate licenses, will contact you when it’s time for an audit.
• Auditor Assignment: An auditor will be assigned to your case, and they will inform you about the necessary preparations and the deadline for submission.
• Document Gathering: You’ll requirement to collect relevant documentation, which usually comprises financial statements, transaction documents, property listings, particulars of confidence accounts, property management agreements or funds, and more, depending on the particular audit requirements. You can discover extensive prerequisites on your state’s Department of Real Estate website.
• Review Process: The auditor will review the gathered documents by visiting your office or remotely. During this review, it may be vital to emphasize any compliance problems that must be addressed.
• Corrective Measures: In case any compliance issues are found, it is essential to document the measures you intend to take to resolve them.
• Inspection Duration: The audit time depends on your brokerage size. Smaller firms may finish the process in a few months, while bigger businesses may require almost a year.

Streamline Your Real Estate Audit with UrAudits

Are you set for your upcoming real estate audit? With our audit planning app, you can guarantee a smooth and hassle-free audit process while enhancing your organization’s control in the market. Here are precious advice to make the most of our app:

1. Seamless Communication: Communicate efficaciously with your auditor by employing UrAudits. Ensure you comprehend their prerequisites and deadlines, clarifying any uncertainties promptly. Our audit app keeps you connected, creating conversations quickly and efficiently.
2. Organize Documentation: Gather key documents effortlessly with UrAudits. Be well-prepared before the audit deadline by having all necessary paperwork reachable within the app. You can perform a broker review of transaction records within ten business days of the audit (as required by Arizona Department of Real Estate regulations), which you can perform with UrAudits.
3. Capture Property Insights Like a Pro: With UrAudits, scrutinize every property site. Take photographs and videos of all issues, annotating pictures to concentrate on particular areas. Possess all data readily reachable at all times, empowering you with an extensive overview of every listing.
4. Take Immediate Action: Initiate actions by incorporating contractors into the Android auditing application for real estate. Monitor their progress in real-time, guaranteeing timely completion. Chat with personnel involved to offer instructions and oversee the process effectively.
5. Generate Comprehensive Reports: Utilize UrAudits to generate elaborate reports instantly, reachable from the cloud. Analyze the reports remotely and export them in several formats. Share these reports with possible clients to show the property’s worth and solidify your credibility in the market.

With UrAudits, managing several property sites becomes a breeze, growing your efficiency as a real estate agent. Say goodbye to carrying piles of documents and papers. You can hug our digital property inspection app to promote your real estate organization and build customer confidence. Let UrAudits be your ultimate companion for a prosperous real estate audit and beyond.

Best Practices to Stay Audit-Ready 

Being audit-ready at all times is essential for any business. Here are the finest methods to guarantee your real estate firm is always prepared for audits:

Develop Transaction Checklists for Real Estate Compliance Tasks

To guarantee compliance with regulations governing every property transaction, produce transaction checklists. These checklists should outline all the necessary steps, required documents, and connected timelines.

You can set up reminders to avoid missing essential tasks by employing electronic checklists. Not only do these checklists enhance compliance, but they also streamline the entire process, saving precious time. Additionally, contemplate producing an audit checklist to guarantee you have all required documents, such as cash receipts and financial institution statements, readily available.

Stay Updated with Regulatory Requirements

Regulations, accounting standards, and ethical instructions evolve. Retaining your internal controls up-to-date with the most recent requirements is necessary.

By adhering to the Financial Accounting Standards Board, you can ensure that all employees know the Realtors’ NAR code of ethics to meet accounting standards. You decrease your brokerage’s liability by guaranteeing everyone follows these finest practices.

Maintain Comprehensive Records

Record-keeping is a crucial aspect of audit readiness. While record-keeping prerequisites may vary by state, most real estate firms are expected to retain transaction records for at least three years. Two primary areas to concentrate on are the documents you must retain and how you store them.

Requirements for documents may differ, so it’s essential to be aware of local regulations. All transaction-related records must be preserved, including advertisements, legal documents, and client communications. Electronic record keeping is a popular choice among individuals due to its convenient accessibility and efficient search capabilities.

Many firms opt for paperless solutions employing robust transaction management application, which provides easy inclusivity and space-saving benefits. Ensure regular backups of electronic records to prevent data loss.

By following these finest practices, your real estate firm can preserve audit readiness, enhance compliance, and streamline operations efficiently.

How UrAudits Supports You Ready for Digital Audits

UrAudits is your extensive solution for either management transactions or digital property inspection needs, and it plays an essential role in preparing you for audits. With a broad array of characteristics crafted to retain you one step ahead, UrAudits guarantees a smooth and audit-ready encounter for your business.

• Document Review: Ensure finished and up-to-date documentation, incorporating transaction records and property inspection real-time incident reports, all in one centralized framework for easy access while audits.
• User Permissions and Visibility: Control access to sensitive data with robust client permissions, granting quick access to auditors while safeguarding confidentiality.
• Comprehensive Transaction History: Access an elaborate list of all transactions within specified timeframes, demonstrating transparency and accountability while audits.
• Efficient Transaction Ledger & Log: Easily manage separate accounting ledgers, keeping track of payments received and expenditures for precise financial records while audits.
• Reliable Backups and Downloads: Protect crucial data with regular backups and save downloads, guaranteeing data inclusivity during the audit process.

Sign up for a personal demo today to discover the extensive abilities of UrAudits featuring user-friendly audit templates. From management transaction tasks to digital property inspection needs, our framework empowers your organization with efficiency, compliance, and smooth audit preparation. Let our audit app for iOS be your trusted partner in preparing for your next audit, guaranteeing that your organization is always audit-ready and operating at its best.