Humber/Ontario Real Estate Course 4 Exam Practice

What duration is specified by law for retaining records of accepted offers?

1. Three years

2. Selling brokers must keep them for two years

3. Only during the active listing period

4. Six years

5. Until the transaction is closed

6. Indefinitely

The correct answer is: Six years

The correct answer is that the specified duration for retaining records of accepted offers is six years. This requirement is set forth in the regulations governing real estate transactions in Ontario, which mandate that all brokerage records need to be kept for a minimum period of six years after the relevant transaction. This timeframe allows for proper oversight and accountability in the real estate industry, ensuring that records are available for review if needed for compliance or legal purposes. A shorter duration, such as two years or only during the active listing period, does not align with the established legal requirements, which emphasize the importance of keeping comprehensive records for a more extended period. Retaining records indefinitely is not practical or required by law, as it may lead to unnecessary clutter and complexity in record management, while retaining them only until the transaction is closed fails to account for the need for historical documentation and potential audits that can occur long after a transaction has completed.