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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

Answer A is incorrect because one year of records would be wholly insufficient to support meaningful regulatory oversight or to resolve disputes arising from transactions that may not surface as complaints until months or years after closing, and Ohio law does not recognize a one-year retention period for broker records.

B

Two

Answer B is incorrect because two years is not the standard set by Ohio Administrative Code for broker record retention β€” while some jurisdictions use a two-year standard, Ohio specifically requires three years, and selecting two years on the exam would demonstrate a failure to know Ohio's specific statutory requirement.

C

Three

Correct Answer
D

Four

Answer D is incorrect because four years exceeds Ohio's mandated minimum retention period of three years β€” while a broker could choose to keep records longer than required, the legal minimum and the answer the exam tests is three years, not four.

Why is this correct?

Answer C is correct because Ohio Administrative Code Β§ 1301:5-1-06 explicitly requires brokers to retain all real estate transaction records, including trust account records, agency agreements, and transaction documents, for a minimum of three years, and this is the period that auditors from the Ohio Division of Real Estate will examine during a compliance audit. The three-year standard is consistent with Ohio's broader approach to professional licensing record retention and aligns with the statute of limitations for many civil claims that could arise from real estate transactions. Failure to maintain three years of records is a violation that can result in license suspension or revocation.

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