For how long must a broker keep all paperwork and records related to real estate transactions?

A broker is required to retain all paperwork and records related to real estate transactions for a period of three years following the date of the transaction. This retention period is established by the New York State Department of State and serves several important purposes. It allows for the review and verification of transactions during audits and potential legal issues. Maintaining these records ensures that brokers can provide accurate information about past transactions if needed, such as in the case of disputes or inquiries from regulatory bodies, clients, or other parties involved. The three-year requirement aligns with the statute of limitations for many legal actions related to real estate, helping to balance the need for accessible records while not requiring an indefinite storage period.