Question

Which of the following statements about the length of time sponsoring brokers must maintain transaction records is true?

A. All records must be maintained for six years.
B. Escrow records must be retained on site for four years.
C. Transaction documents (contracts, disclosures, etc.) may be destroyed within one year of the transaction closing.
D. Whether stored onsite or offsite, all real estate records must be kept for five years.

Answer 1

Sponsoring brokers are required to maintain transaction records for a minimum period, typically between three to seven years, depending on state law and regulatory guidelines.

Step-by-step explanation:

When it comes to the length of time sponsoring brokers must maintain transaction records in the real estate industry, there are specific requirements that must be followed. Generally, it is mandated that all records, including contracts, escrow, and disclosures, must be kept for a minimum period, which is dictated by state law, regulatory bodies, or real estate commissions.

Typically, these records should be preserved for several years after the transaction has closed. While state regulations can vary, a common rule of thumb is that records should be maintained for a period of three to seven years. This duration ensures that any necessary information is available in the event of future disputes, audits, or legal requirements. It is important for brokers to be familiar with the specific laws and regulations that apply in their area to be in compliance with legal obligations and industry standards.