Record Retention and Technology
The rules and regulations of the Real Estate Commission require that brokers “shall retain records pertaining to a real estate transaction for at least 3 years following consummation.” The regulation sets a 6 month retention period for certain other documents not resulting in a closed transaction and for time-shares. The regulation also requires that brokers “shall produce the records required in subsection (a) for examination by the Commission or its authorized representatives upon written request or pursuant to an office inspection.”
It is our understanding that saving documents electronically is permissible provided they are readily accessible and can be produced upon request as stated in the regulation.
Many of the electronic forms and signature programs used today allow one to save files. However, files stored in this manner are subject to the security, accessibility, and continued existence of the third-party program provider. Realtors® are encouraged to develop policies for storage and back up of documents that ensure your ability to comply with state regulations.
