What is one exception to the requirement for completing the Receipt of Funds Record?

The requirement for completing the Receipt of Funds Record is an essential part of maintaining transparency and accountability in real estate transactions. One notable exception occurs in transactions that do not involve a real estate brokerage. In these cases, there is no brokerage to oversee the handling of funds or to ensure that a Receipt of Funds Record is completed, which means that the typical requirements associated with broker-managed transactions do not apply.

When a transaction is conducted independently of a brokerage, the mechanisms and protocols that are typically enforced by a brokerage, including the completion of this record, may not be relevant. This exception recognizes the differences in structure and oversight between transactions performed under a brokerage and those carried out without one. Thus, the correct understanding of this exception lies in recognizing that the involvement of a brokerage plays a critical role in the need for such formal records to be maintained.