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If an auditor visits a broker's office in Ohio, how many years of records are required?

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Question & Answer

Review the question and all answer choices

A

One

One year is insufficient for record retention in Ohio. This duration would not allow adequate time for resolving potential disputes or completing post-closing matters, creating compliance risks for brokers during audits.

B

Two

Two years falls short of Ohio's requirement. This retention period would leave brokers vulnerable during audits and would not properly document transactions that might have extended closing periods or post-closing issues.

C

Three

Correct Answer
D

Four

Four years exceeds Ohio's requirement. While longer retention might seem safer, it's not mandated and could create unnecessary storage costs and administrative burden without providing additional legal protection.

Why is this correct?

Ohio Administrative Code 4735-3-03 mandates that brokers maintain all records for at least three years. This period provides sufficient time for audits, potential disputes, and compliance verification. Three years represents the standard retention period that balances regulatory needs with practical business operations.

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