For how long must a broker retain transaction records?

A broker is required to retain transaction records for a period of six years, which aligns with the recommended practices set forth by state regulations and industry standards. This duration ensures that all documents related to real estate transactions, such as contracts, disclosures, and closing statements, are available for reference in case of audits, legal disputes, or inquiries from regulatory bodies. Retaining records for this timeframe balances the need for diligence and accountability in the profession while considering the practicalities of recordkeeping and document retrieval. By adhering to this requirement, brokers can protect themselves and their clients, maintaining a high level of professionalism and compliance in their real estate practices.