How long must records be retained after the closing of a transaction?

In North Carolina, real estate licensees are required to maintain transaction records for a minimum of three years after the closing of a transaction. This retention period aligns with the legal requirements set forth by the North Carolina Real Estate Commission. The purpose of keeping these records is to ensure that there is a detailed account of transactions that may be referenced for various reasons, including audits, disputes, or inquiries about the transaction in question.

Maintaining records for three years provides a suitable balance between having sufficient time to address potential issues and ensuring the timely disposal of outdated information. This regulation helps protect both the clients and the licensees by ensuring that relevant documentation is available for review in case of any future claims or questions regarding the transaction.

Other options for shorter or longer retention periods do not align with the regulations established by the Real Estate Commission. Therefore, the correct answer reflects the legal standard that licensees in North Carolina must adhere to regarding the retention of transaction records.