Oregon Broker PSI Practice Exam

Which of the following documents does NOT need to be kept by the principal broker for a period of time after a transaction?

1. Bills paid to keep the client trust account open

2. Sales contracts of each transaction

3. Closing statements of real estate transactions

4. Disclosures made during the transaction

The correct answer is: Bills paid to keep the client trust account open

The correct answer is that bills paid to keep the client trust account open do not need to be kept by the principal broker for a specified period after a transaction. In real estate transactions, the primary focus of record-keeping relates to documents that are essential for legal and financial accountability regarding the transactions themselves, rather than general operational expenses like maintaining a trust account. Sales contracts are critical as they detail the terms agreed upon by the parties and must be retained for potential future reference or legal requirements. Similarly, closing statements summarize the financial aspects of the transaction and are important for both the broker and the clients, serving as documentation of how much money was exchanged, what fees were paid, and clarifying net profits or losses. Disclosures made during the transaction are also significant, as they ensure compliance with legal requirements and protect against potential liability. Proper record-keeping of disclosures is essential in case disputes arise after the transaction has closed. Therefore, while maintaining a trust account is crucial to broker operations, the specific payment records for keeping that account open do not warrant the same level of retention as the transaction-related documents.