Under Minnesota Statutes Chapter 82, a real estate broker who maintains a trust account for client funds is required to keep records of all trust account transactions for a minimum period of time. How long must these records be retained?
Correct Answer
C) Five years from the date of each transaction
Under Minn. Stat. Ch. 82 and Minnesota Department of Commerce rules, brokers are required to maintain trust account records and transaction documents for a minimum of five years. This retention requirement ensures that the Department can audit trust account activity and investigate complaints relating to client fund handling within a reasonable period after transactions occur.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A tie-in arrangement is an illegal antitrust practice in which a seller conditions the purchase of one product or service on the buyer's agreement to purchase a separate product or service.
A trust account, also called an escrow account, is a separate bank account maintained by a broker to hold funds belonging to others, such as earnest money deposits, security deposits, or other client funds.
Advertising regulations govern how real estate licensees may market properties and services, requiring truthful, non-deceptive advertising that includes proper identification of the brokerage.
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