[Broker’s Authority and Duties – Record Retention Requirements] A North Carolina broker must maintain copies of all transaction files for at least…

The North Carolina Real Estate Commission (NCREC) Rule 21 NCAC 58A .0108 explicitly requires brokers to retain all records related to a real estate transaction for a minimum of three years. This retention period begins from the successful or unsuccessful conclusion of the transaction or from the date of the last disbursement of any trust funds associated with the transaction, whichever is later. This rule ensures that a complete and accurate history of the transaction is available for potential audits or investigations by the Commission to verify compliance with license law.

A. 1 year: This period is insufficient and violates the minimum record retention requirement established by the North Carolina Real Estate Commission.

B. 2 years: This is shorter than the legally mandated three-year retention period and would place a broker in non-compliance with NCREC rules.

D. 4 years: While retaining records for longer than required is not prohibited, the minimum legal requirement is specifically three years, not four.

1. North Carolina Administrative Code. Title 21, Chapter 58, Subchapter A, Section .0108, "Retention of Records." (21 NCAC 58A .0108). This rule states, "Brokers shall retain for three years all records required to be maintained by this Subchapter..."

2. North Carolina Real Estate Commission. (2023). North Carolina Real Estate Manual. Chapter 8, Brokerage Relationships and Practices, Section: "Retention of Records," p. 8-27. The manual clarifies that "Commission Rule A.0108 requires a broker to retain for a period of three years all records pertaining to a real estate transaction."