Texas Real Estate Sales Agent ExamReal Estate PracticeMedium
A Texas real estate broker is preparing to shred old transaction records that are more than four years old. According to TREC Rules, what is the minimum duration for which a broker must retain records related to real estate transactions?
- AFour years
- BThree years
- CFive years
- DTwo years
Show answer & explanationAnswer & explanation
Correct answer: A. Four years
TREC Rules require a broker to maintain records relating to a real estate transaction for at least four years from the date of the closing or termination of the contract.
Why the other options are wrong
- B. Three years is incorrect; the minimum is longer.
- C. Five years is longer than the minimum required, but four years is the exact minimum.
- D. Two years is incorrect; the minimum is longer.
TREC Record Retention
Texas Real Estate Commission (TREC) rules require real estate brokers to maintain records related to a real estate transaction for a minimum of four years from the date of closing or termination of the contract.
- Applies to all transaction records.
- Ensures accountability and allows for audit.
- Crucial for compliance and dispute resolution.
Memory trick: Keep your papers for four years, no fears!