Final answer:
A broker must maintain transaction records for a specific period of time as required by law, usually for a minimum of three to five years. These records include details of the transaction, client information, and other relevant documentation. Failure to maintain proper records can result in penalties or the suspension of the broker's license.
Step-by-step explanation:
After a transaction closes or terminates, a broker must maintain the records for a certain period of time as required by law. The exact length of time may vary depending on the specific regulations in the broker's jurisdiction. However, as a general guideline, brokers are typically required to keep records for a minimum of three to five years.
These records may include details of the transaction, client information, financial statements, and any other relevant documentation. The purpose of maintaining these records is to ensure compliance with legal and regulatory requirements, facilitate audits or investigations, and protect both the broker and the clients.
It is important for brokers to have a well-organized record-keeping system to easily retrieve and store the necessary documents. Failure to maintain proper records can result in penalties, fines, or even the suspension of the broker's license.