Record Keeping, Documentation, and Termination

In real estate, if it isn't written down, it didn't happen. Because this industry involves large sums of money, it is very prone to lawsuits. To protect the public (and the broker), the DBPR requires brokers to maintain a massive "paper trail."The 5-Year Rule: This is the magic number. A broker must keep all transaction files for a minimum of 5 years. This isn't just for closed deals; it applies to failed deals too. If you wrote an offer for a buyer and the seller rejected it, you still have to keep that rejected offer in the file for 5 years.Litigation Extension: If a file is involved in a lawsuit or legal investigation, the 5-year clock stops ticking. You must keep that file for 2 years after the legal case ends, even if that extends well past the original 5 years.What to Keep: Everything. Emails, text messages about the deal, contracts, disclosures, closing statements, and escrow deposit receipts.