Florida Broker Practice Exam

For how long must brokers maintain records of real estate transactions?

1. 3 years

2. 5 years or 2 years after litigation

3. 7 years regardless of litigation

4. Indefinitely

The correct answer is: 5 years or 2 years after litigation

Brokers are required to maintain records of real estate transactions for a minimum of 5 years. This requirement also states that if there is litigation related to the transaction, the records must be kept for 2 years after the conclusion of that litigation. This dual approach ensures that brokers have adequate documentation to respond to potential legal inquiries and protects both the broker and the clients involved in the transactions. This time frame is important because it reflects best practices in record-keeping for accountability and compliance with regulatory standards. Additionally, having access to accurate transaction records allows brokers to provide proof of compliance with industry regulations as well as to resolve any disputes that may arise later. In comparison, while some options may suggest keeping records for shorter or longer periods, the specified duration in answer B balances the need for effective record management with the reality of potential future legal issues in the real estate sector.