Section 20

Record keeping requirements if mortgages and other charges held in trust for clients

20. Every licensee who holds in trust mortgages or other charges on real property, either directly or indirectly through a related person or corporation, shall maintain financial records in addition to those required under section 18 and, as a minimum additional requirement, shall maintain, in accordance with sections 21, 22 and 23, the following records: 1. A mortgage asset ledger showing separately for each mortgage or charge, i. all funds received and disbursed on account of the mortgage or charge, ii. the balance of the principal amount outstanding for each mortgage or charge, iii. an abbreviated legal description or the municipal address of the real property, and iv. the particulars of registration of the mortgage or charge. 2. A mortgage liability ledger showing separately for each person on whose behalf a mortgage or charge is held in trust, i. all funds received and disbursed on account of each mortgage or charge held in trust for the person, ii. the balance of the principal amount invested in each mortgage or charge, iii. an abbreviated legal description or the municipal address for each mortgaged or charged real property, and iv. the particulars of registration of each mortgage or charge. 3. A record showing a comparison made monthly of the total of the principal balances outstanding on the mortgages or charges held in trust and the total of all principal balances held on behalf of the investors as they appear from the financial records together with the reasons for any differences between the totals, and the following records to support the monthly comparison: i. A detailed listing made monthly identifying each mortgage or charge and showing for each the balance of the principal amount outstanding. ii. A detailed listing made monthly identifying each investor and showing the balance of the principal invested in each mortgage or charge.