Tennessee Realtor State Practice Exam

For how many years are licensees in Tennessee required to keep transaction documents?

1. One year

2. Three years

3. Five years

4. Seven years

The correct answer is: Three years

In Tennessee, real estate licensees are required to maintain transaction documents for a period of three years. This requirement is in line with the rules established by the Tennessee Real Estate Commission, which mandates that all records pertaining to transactions, including contracts, confirmations, and agency disclosures, be kept in an orderly manner for future reference. This time frame allows for adequate oversight and ensures that necessary documentation is available should any disputes or inquiries arise regarding the transaction, thus protecting both the client and the licensee. Retaining documents for this three-year period strikes a balance between record-keeping and the practicalities of managing paperwork efficiently.