Kovats Real Estate School Practice Test 2025 - Free Real Estate Practice Questions and Study Guide

Question: 1 / 400

For how long must a broker keep permanent records of other persons' funds?

Four years

Five years

Six years

A broker is required to keep permanent records of other persons' funds for six years. This requirement is in accordance with regulations that aim to ensure transparency and accountability in handling client funds. Maintaining such records for this duration allows for proper auditing, tracking, and compliance with legal obligations if disputes or inquiries arise regarding financial transactions.

While some other time frames may exist for different types of records or transactions in the real estate sector, the six-year period specifically pertains to the handling of trust accounts and related financial matters. This time frame provides a reasonable balance that supports both record-keeping efficiency and consumer protection. Proper adherence to this requirement helps protect both the broker and the clients they serve.

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Ten years

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