Texas Real Estate Sales Agent ExamReal Estate PracticeMedium
A real estate broker in Texas has decided to convert their brokerage to a paperless office. What is the minimum retention period required by TREC for electronic records related to real estate transactions?
- A3 years from the date of the transaction.
- B5 years from the date of the closing or termination of a contract.
- C2 years from the date of the transaction.
- D4 years from the date of the closing or termination of a contract.
Show answer & explanationAnswer & explanation
Correct answer: D. 4 years from the date of the closing or termination of a contract.
TREC Rule §531.2 requires brokers to retain records for at least four years from the date a contract is executed or the date a transaction closes or terminates, whichever is later. This applies to both paper and electronic records.
Why the other options are wrong
- A. This is too short a period according to TREC rules.
- B. While retaining longer is permissible, this is not the minimum required period.
- C. This is too short a period according to TREC rules.
TREC Record Retention
The Texas Real Estate Commission (TREC) mandates that real estate brokers retain all records related to a real estate transaction for a minimum of four years from the date of closing or contract termination.
- Applies to all types of records: paper, electronic, communication.
- Purpose is for regulatory oversight and potential legal proceedings.
- Broker is responsible for ensuring accessibility and integrity of records.
Memory trick: Four years, no tears, for TREC's records, my dears.