What must be done with backup copies of computerized real estate trust accounts?

Backup copies of computerized real estate trust accounts must be stored in a separate off-site location to ensure their safety and integrity. This practice is essential for risk management in case of data loss, theft, or disasters that might affect the primary data. By having backups in an off-site location, property management can protect crucial financial information and maintain compliance with regulations that require the safeguarding of client funds. Storing backups separately mitigates risks associated with hardware failures, cyberattacks, or natural disasters that could compromise the main data stored locally.

Keeping backups in the same location as the main file limits their effectiveness because if a disaster strikes that location, both the original and the backup can be lost simultaneously. Therefore, the requirement to store backup copies off-site is a best practice for ensuring continual access to important records and compliance with fiduciary responsibilities.