California Real Estate Practice Exam

For how long must a broker maintain transaction records?

1. For one year from the date of listing

2. For three years from the date of listing or three years from the date of closing, whichever is longer

3. Until the property is sold

4. Indefinitely

The correct answer is: For three years from the date of listing or three years from the date of closing, whichever is longer

A is incorrect because one year is not enough time to maintain accurate and complete transaction records. B is correct because it covers both the required three years from listing and three years from closing, whichever is longer. C is incorrect because the records must be maintained for at least three years, not just until the property is sold. D is incorrect because three years is the minimum time period required for maintaining transaction records, not indefinitely.