How long must transaction and trust account records be kept according to the Real Estate License Law?

The correct duration for maintaining transaction and trust account records according to the Colorado Real Estate License Law is four years. This requirement is set to ensure that relevant documentation is available for review in case of audits, disputes, or other legal inquiries. Maintaining records for this period helps protect both clients and real estate professionals by ensuring accountability and transparency in real estate transactions.

The four-year period relates to the time frame in which potential issues, claims, or disputes could arise, thus mandating that records be kept long enough to address any concerns that may occur post-transaction. In general, many other legal requirements for record retention may vary, but four years is specifically outlined in the Colorado real estate regulations as a standard to uphold professionalism and protect consumer rights in the industry.