What is a requirement of brokers related to transaction records?

Brokers are required to retain transaction records for a minimum of five years to ensure compliance with various laws and regulations governing real estate practices. This retention period allows for the adequate review of transactions in the event of disputes, audits, compliance requests, or legal matters. Keeping records for at least five years helps protect both the broker and their clients by providing a reliable paper trail that can be referenced if necessary. The five-year standard is widely adopted in many states, including Delaware, as it strikes a balance between retaining essential information and managing the storage of records effectively.