What is the earliest date a broker can discard records of a closed transaction?

What is the earliest date a broker can discard records of a closed transaction?

• A. One year from the closing date
• B. Two years from the closing date
• C. Three years from the closing date
• D. Five years from the closing date

Answer: (C)

In California, real estate brokers are required to retain transaction records for a minimum of three years from the closing date of the transaction. This requirement ensures that necessary documentation is available for legal and regulatory purposes, such as audits or potential disputes that may arise after a transaction is completed. Keeping the records for three years allows for sufficient time to address any inquiries or issues that may surface regarding the transaction. Therefore, the option stating three years from the closing date aligns with California's standard practices regarding record retention for real estate transactions.

In California, real estate brokers are required to retain transaction records for a minimum of three years from the closing date of the transaction. This requirement ensures that necessary documentation is available for legal and regulatory purposes, such as audits or potential disputes that may arise after a transaction is completed.

Keeping the records for three years allows for sufficient time to address any inquiries or issues that may surface regarding the transaction. Therefore, the option stating three years from the closing date aligns with California's standard practices regarding record retention for real estate transactions.