What should a broker do if they are requested to produce transaction records almost three years after a sale and they have discarded the files?

A broker has specific legal obligations regarding the retention of transaction records, which typically include maintaining these documents for a minimum duration as mandated by state law. In California, real estate brokers are required to retain transaction records for at least three years after the transaction is completed. Discarding records before this period has elapsed constitutes a violation of these regulations.

This violation can lead to significant legal consequences for the broker, including disciplinary action from regulatory bodies. Proper record-keeping is essential for ensuring compliance and protecting both the broker and their clients.

While it is true that buyers may keep their own records, this does not absolve the broker of their responsibility to maintain the necessary documentation. Brokers should be diligent in adhering to retention requirements to avoid potential disputes and ensure they are prepared for any future inquiries related to the transactions they handled.