For how long must real estate brokers maintain transaction records in North Carolina?

In North Carolina, real estate brokers are required to maintain transaction records for three years from the date of the transaction. This requirement is set forth to ensure that brokers are able to provide the necessary documentation for any potential audits or inquiries regarding their transactions during that period. Keeping records for three years allows for a sufficient timeframe to address any issues that may arise after the closing of a transaction, whether related to taxes, compliance with regulatory requirements, or disputes between parties.

Maintaining records for a shorter duration, such as one year, would not provide adequate coverage for potential legal inquiries or the need for follow-up documentation. Similarly, keeping records for five years or indefinitely is not mandated by North Carolina law and could lead to unnecessary complications and storage issues for brokers handling multiple transactions. Thus, adhering to the three-year requirement strikes a balance between sufficient record-keeping and practicality for real estate professionals.