PSI Virginia Real Estate Practice Exam

For how long must a principal broker maintain transaction records?

1. For a minimum of one year

2. For three years following the closing of a transaction

3. For five years following the signing of a contract

4. Indefinitely

The correct answer is: For three years following the closing of a transaction

The requirement for a principal broker to maintain transaction records for three years following the closing of a transaction aligns with legal standards and regulatory guidelines in real estate practices. This timeframe is established to ensure that records are available for potential audits and legal inquiries, as well as to assist in resolving any disputes that may arise after a transaction has concluded. Maintaining records for three years provides a balance between the need for sufficient documentation during a reasonable period while alleviating the burden on brokers to retain records indefinitely. During this period, the principal broker can access transaction details, providing clarity and evidence if any issues occur related to the transaction, such as disputes or complaints from clients. Additionally, this duration reflects standard practices across many states, encouraging uniformity in record-keeping among real estate professionals. The other options present either shorter or longer periods, which do not meet standard regulatory requirements or practical business needs for managing transaction records effectively. By adhering to this three-year timeframe, brokers can ensure compliance with relevant real estate laws while optimizing their record-keeping practices.