Texas Real Estate Brokerage Sales Apprentice Education (SAE) Practice Exam

A broker must maintain records for how long from the closing date of a transaction?

1. 2 years

2. 4 years

3. 5 years

4. 6 years

The correct answer is: 4 years

The correct answer is based on the requirements set forth by the Texas Real Estate Commission (TREC). A broker is mandated to maintain transaction records for four years from the closing date. This regulation ensures that records are available for potential audits, legal inquiries, or disputes that may arise after a transaction has concluded. By retaining these documents for four years, brokers can demonstrate compliance with laws and regulations and provide necessary documentation if questions about the transaction are raised later. Other durations, such as two, five, or six years, do not align with TREC's regulations regarding record retention. Understanding these specific timeframes is crucial for brokers to effectively manage their responsibilities and ensure they are in compliance with state laws.