Under GREC rules, which of the following best describes a supervising broker's obligation regarding transaction documentation?
Correct Answer
C) Brokers must maintain transaction and contractual records for the required retention period and produce them in an accessible format upon request.
Under GREC Rules (520-1-.08) and Georgia License Laws, supervising brokers bear direct responsibility for maintaining transaction and contractual records for the mandated retention period (three years). These records must be organized and accessible so they can be produced promptly if requested by GREC during an audit or investigation. This duty cannot be avoided through delegation alone.
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Previous Question
A Georgia broker is reviewing the firm's record-keeping practices to ensure compliance with GREC requirements. Which of the following methods for maintaining required transaction records would most likely be found deficient during a GREC audit?
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Broker Johnson receives a $5,000 earnest money check from buyer Smith for a property purchase. The closing is scheduled for 30 days later. According to GREC rules, what must Broker Johnson do with this earnest money?