# Florida broker monthly escrow reconciliation (Rule 61J2-14.012)

By Rotomal team · Updated 2026-10-29 · Part of [Trust Reconciler](https://rotomal.com/trust-reconcile/)

**Short answer:** Under Florida Administrative Code Rule 61J2-14.012(2), a broker with an escrow (trust) account must, once a month, cause a written statement to be made comparing the broker's total trust liability with the reconciled bank balance of every trust account, and must review, sign and date it. If liability and bank balances don't agree, the reconciliation must explain the difference and the corrective action taken. No particular form is required and the statement is not sent to FREC, but it should be easy to produce in an audit; Florida Realtors publishes an optional form, the MSR-5.

## What Rule 61J2-14.012 requires

- Once monthly, the broker causes a written statement to be made comparing total trust liability with the reconciled bank balance(s) of all trust accounts.
- The broker reviews, signs and dates the monthly statement-reconciliation.
- When trust liability and bank balances don't agree, the reconciliation describes or explains the difference and any corrective action for shortages or overages.
- When a trust account has a returned check or a negative balance, the reconciliation discloses the cause and the corrective action.
- Deposit records, bank statements and agreements are preserved and made available to the Department of Business and Professional Regulation for inspection.

## What goes on the monthly statement

| Item | Where it comes from |
| --- | --- |
| Date the reconciliation was done, and the date used to reconcile the balances | Your cut-off, usually month end |
| Bank name, account name and account number | The bank statement |
| Account balance and its date | The bank statement |
| Deposits in transit | Deposits recorded but not yet on the statement |
| Outstanding checks | Checks issued but not yet cleared |
| Itemized list of the broker's trust liability | Each buyer, seller or tenant deposit held |
| Any other items needed to reconcile the bank balance with the broker's checkbook | Fees, returned checks, corrections |
| Broker's signature and date | The broker reviews, signs and dates it |

Laid out this way, the statement is a three-way check: the reconciled bank balance, the checkbook, and the itemized liability total must agree.

## When liability and the bank don't agree

When the numbers don't agree, the rule requires the reconciliation itself to say why and what was done. Write down what caused each difference, such as a deposit recorded twice, a fee charged to the account or a check returned unpaid, and what was done about any shortage or overage. A difference you can't explain is the thing to escalate to your accountant or lawyer, not to carry into next month.

## Who prepares it and who signs

Florida Realtors' summary of the escrow rules says an accountant can prepare the statement, but the broker must still review, sign and date it, and the broker is ultimately responsible for the funds in escrow.

## The MSR-5 and other formats

Florida Realtors publishes a Monthly Reconciliation Statement Real Estate Trust Account (MSR-5), described in its April 2026 forms article as a form that can help brokers comply. Using it is optional: the article says a broker who uses their own reconciliation form should check it carefully against the items Rule 61J2-14.012 lists.

## Keeping it audit-ready

There is no requirement to send the statements to FREC, but brokers should have easy access to them if the office is audited. Trust Reconciler produces a signed monthly statement from escrow books kept in QuickBooks Online or Xero, with the itemized liability, outstanding items and an explanation line for each difference. It was built for law firms; tell us you are a Florida brokerage when you request service and we will confirm the layout matches the rule.

## FAQ

### Do I send my monthly reconciliation to FREC?

No. Florida Realtors notes there is no requirement to send it to FREC, but keep it where you can produce it quickly in an audit.

### Is the MSR-5 form mandatory?

No. It is an optional Florida Realtors form; any format works if it contains what Rule 61J2-14.012 requires.

### Can my bookkeeper sign the reconciliation?

A bookkeeper or accountant can prepare it, but the rule requires the broker to review, sign and date it.

### What if there is a shortage?

The reconciliation must explain the difference and the corrective action taken. Speak to a Florida real estate lawyer about any reporting duty that may apply.

### Is this legal advice?

No. It summarises the rule and Florida Realtors' guidance as of 29 October 2026, not legal or accounting advice. Confirm with FREC or your own counsel.

## Sources

- Florida Administrative Rules: 61J2-14.012 Broker's Records (title and history). https://www.flrules.org/gateway/ruleNo.asp?id=61J2-14.012
- Fla. Admin. Code R. 61J2-14.012 text (Cornell LII copy). https://www.law.cornell.edu/regulations/florida/Fla-Admin-Code-Ann-R-61J2-14-012
- Florida Realtors: Florida escrow laws and rules (updated 1 December 2023). https://floridarealtors.org/law-ethics/library/florida-escrow-laws-rules
- Florida Realtors: forms related to escrow (27 April 2026), MSR-5. https://www.floridarealtors.org/news-media/news-articles/2026/04/florida-realtors-forms-related-escrow

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