Florida Real Estate Sales Associate Examination Content OutlineReal Estate Brokerage Activities and ProceduresMedium
A Florida real estate broker is responsible for maintaining all transaction records for their brokerage. According to Florida law, for how long must these records, including escrow account records, be preserved?
- AAt least 5 years.
- BUntil all parties to the transaction agree they can be destroyed.
- CAt least 2 years.
- DAt least 3 years.
Show answer & explanationAnswer & explanation
Correct answer: A. At least 5 years.
Florida real estate law requires brokers to preserve all books, accounts, and records, including escrow account records, for at least five years. If a record has been part of litigation or a FREC investigation, it must be kept for two years past the conclusion of the event, even if that exceeds five years.
Why the other options are wrong
- B. While agreement might be sought, the legal requirement for retention supersedes party agreement.
- C. 2 years is incorrect; this might be a common business practice but not the specific real estate requirement.
- D. 3 years is incorrect; the specific requirement for real estate records is longer.
Brokerage Record Retention (FL)
Florida real estate brokers must preserve all business records, including transaction and escrow account records, for a minimum of five years.
- Minimum 5-year retention.
- Includes all books, accounts, and records.
- If litigation/investigation, 2 years past conclusion of event.
- Can be stored electronically.
Memory trick: Five years, clear and keen, all your records must be seen!