New York Real Estate Salesperson ExaminationBrokerage and Salesperson ResponsibilitiesEasy
A real estate salesperson is instructed by their supervising broker to remove all transaction records older than three years from the brokerage's active files and shred them. Is this instruction compliant with New York record-keeping regulations?
- ANo, New York law requires real estate brokers to retain all transaction records for a period of at least five years.
- BNo, while three years is the minimum, best practice dictates retaining records indefinitely for legal protection.
- CYes, provided the records were digitized and stored electronically before shredding the physical copies.
- DYes, as New York law only requires retention of records for three years.
Show answer & explanationAnswer & explanation
Correct answer: A. No, New York law requires real estate brokers to retain all transaction records for a period of at least five years.
New York Real Property Law requires brokers to keep all records pertaining to listings, purchases, sales, leases, and other real estate transactions for a minimum period of five years. Shredding records after three years would be a violation.
Why the other options are wrong
- B. While indefinite retention might be a 'best practice' for some, the question asks about compliance with *regulations*, and the legal minimum is five years, making three years non-compliant.
- C. Digitization does not shorten the mandatory retention period for the content of the records.
- D. Three years is incorrect; the minimum is five years in NY.
NY Broker Record Retention
New York Real Property Law mandates that real estate brokers retain all transaction records, including listings, offers, sales, and leases, for a minimum period of five years from the date of the transaction's completion or termination.
- Minimum retention period is five years.
- Applies to all transaction-related documents.
- Records must be readily accessible for inspection by the DOS.
Memory trick: Five Years, Files Firmly Filed.