When a broker wants to store documents electronically, the storage method may not allow the final documents to be altered. What method of electronic document storage is required by the Department of Real Estate (DRE)?
Question & Answer
Review the question and all answer choices
Disc Operating System (DOS).
Disc Operating System (DOS) is incorrect because it's an outdated operating system that allows files to be easily modified and deleted, violating the DRE's requirement for unalterable final documents.
Save Now, Always and Keep Electronic (SNAKE).
Save Now, Always and Keep Electronic (SNAKE) is incorrect as it's not a recognized electronic document storage method and doesn't provide the unalterable feature required by the DRE.
Write Once Read Many (WORM).
What method of electronic document storage is required by the Department of Real Estate (DRE)? a. Disc Operating System (DOS). b. Save Now, Always and Keep Electronic (SNAKE). c. Write Once Read Many (WORM). d. Random Access Memory (RAM).
Random Access Memory (RAM) is incorrect because it's volatile memory that loses data when power is turned off and allows for constant modification, making it unsuitable for permanent document storage.
Why is this correct?
WORM (Write Once Read Many) is the correct method because it creates a permanent, unchangeable record once information is written. This ensures document integrity and prevents unauthorized alterations, which is exactly what the DRE requires for storing final real estate documents electronically.
Deep Analysis
AI-powered in-depth explanation of this concept
This question tests understanding of electronic document storage requirements in real estate practice, which is crucial for maintaining record integrity and compliance with regulations. The core concept revolves around ensuring that once final documents are stored, they cannot be altered to prevent fraud and maintain an accurate record of transactions. The correct answer, WORM (Write Once Read Many), addresses this requirement by creating a permanent, unchangeable record. This question is challenging because it requires knowledge of technical storage methods and their application in real estate record-keeping. Many students might not be familiar with these technical terms or their implications for real estate practice. This concept connects to broader real estate knowledge regarding record-keeping requirements, document retention periods, and broker responsibilities for maintaining accurate records.
Knowledge Background
Essential context and foundational knowledge
Electronic document storage requirements in real estate stem from the need to maintain accurate, tamper-proof records of real estate transactions. The California Department of Real Estate (DRE) mandates specific standards for document storage to ensure integrity and permanence. WORM technology was developed specifically for applications requiring unchangeable records, making it ideal for legal and financial documents. This requirement protects all parties in a transaction by ensuring that once documents are finalized and stored, they cannot be altered without creating a new record, thus maintaining the integrity of the transaction history.
WORM = Write Once, Read Many, Remember Forever
Remember that WORM creates permanent records that can't be changed, like etching in stone rather than writing in pencil.
For electronic storage questions, look for the option that prevents alteration - WORM technology is specifically designed for permanent, unchangeable records.
Real World Application
How this concept applies in actual real estate practice
Imagine a broker completes a transaction and needs to store the final, signed purchase agreement electronically. Using WORM storage ensures that this document cannot be altered later. If a dispute arises years later, both parties can be confident that the stored document remains in its original form. This protects the broker from claims of document tampering and maintains the integrity of the transaction record, which is especially important in legal proceedings or when questions about the original terms surface.
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