Real Estate Council of Alberta Fundamentals Practice Exam

For how long must records be kept by a brokerage in Alberta?

1. 1 year

2. 3 years

3. 5 years

4. Indefinitely

The correct answer is: 3 years

In Alberta, brokerages are required to retain their records for a minimum of three years. This timeframe aligns with the regulations set forth by the Real Estate Council of Alberta (RECA), which aims to ensure that all transactional records and related documents are available for review and compliance purposes. This retention period is crucial for maintaining transparency, accountability, and proper record-keeping in real estate transactions, as it allows for audits and investigations that may arise long after the transactions close. Keeping records for three years strikes a balance between the need for available information and the practicality of storage and management. After this period, records can be securely disposed of unless there are specific circumstances or additional regulatory requirements that warrant a longer retention period. This practice helps brokerages manage their information effectively while still adhering to industry standards.