Rule
1.15 of the Massachusetts Rules of Professional Conduct
sets forth requirements for account records and reconciliation
that may require revision of the disbursement procedures
at your firm. (Your title insurance underwriter may be able
to provide additional guidance on compliance.) The good
news is that the tools you need to comply with the new rule
are readily available from Standard Solutions.
You can review the full
text of MRPC Rule 1.15 on the Massachusetts Court system or
Board
of Bar Overseers Web sites. Most pertinent to real estate
conveyancing practice are the provisions requiring:
-
Documentation identifying client funds/IOLTA accounts as such;
-
Check registers with running balances that fully identify each
deposit and disbursement;
-
Separate records of deposits and disbursements for each client
matter (each closing);
-
Three-way bank account reconciliation at least every sixty days
(ideally done monthly).
As
with any other part of the conveyancing process, automated disbursement
and accounting systems are far more efficient than manual procedures.
Standard Conveyancer and Standard HUD & Title users have available
the Accounting/Checkwriting module, which uses Quicken to generate
checks and produce reports. This system is suitable for use to
help you comply with the requirements of Rule 1.15.
If you have our Accounting/Checkwriting module you can get advice
from us on using the system to help you comply with the new rule.
If not, the module can be added to your system at a very reasonable
cost that includes training.
For more information on using or adding the Accounting/Checkwriting
module for Standard Conveyancer or Standard HUD & Title, please
contact sales@standardsolutions.com.
