California Real Estate Practice Exam

In the event a transaction does not close, a broker must retain the records for how long?

1. One year from listing

2. Two years from listing

3. Three years from listing

4. Five years from listing

The correct answer is: Three years from listing

Brokers must retain records for a period of three years from the date of the listing. Options A and B are incorrect because they are shorter periods of time. Option D is incorrect because it is a longer period of time. Keeping records for longer than necessary can take up valuable storage space and create unnecessary clutter. Overall, three years is the industry standard for record retention in the event of a transaction not closing.