New York Real Estate Salesperson ExaminationBrokerage and Salesperson ResponsibilitiesMedium
A real estate broker is preparing for a Department of State audit of their escrow account records. According to New York law, for how long must the broker retain records related to all real estate transactions, including escrow account ledgers and bank statements?
- AAt least 1 year.
- BAt least 5 years.
- CAt least 3 years.
- DAt least 7 years.
Show answer & explanationAnswer & explanation
Correct answer: C. At least 3 years.
New York State real estate law requires brokers to retain all records related to real estate transactions, including escrow account records, for a period of at least three years from the date of the transaction.
Why the other options are wrong
- A. 1 year is too short a retention period.
- B. 5 years is longer than required, but 3 years is the minimum.
- D. 7 years is often a general business record retention period, but NY real estate law specifies 3 years for transaction records.
NY Broker Record Retention
In New York, real estate brokers must retain all transaction records, including escrow account ledgers and bank statements, for a minimum of three years.
- Applies to all transaction records.
- Minimum retention period is three years.
- Ensures accountability and audit readiness.
Memory trick: Three years to keep the deal's history clear.