PSI Virginia Real Estate Practice Exam

What is the required retention period for financial records according to Virginia regulations?

1. One year

2. Three years

3. Five years

4. Seven years

The correct answer is: Five years

Virginia regulations require real estate brokers and salespersons to retain financial records for five years. This retention period ensures that all necessary documentation is available for reference in the event of audits, investigations, or disputes which may arise during that period. By keeping these records for five years, the state ensures compliance with various legal and regulatory requirements, enabling proper oversight of financial transactions and maintaining integrity within the real estate industry. Records include but are not limited to, financial statements, profit and loss statements, and transaction documents. Adhering to this five-year requirement helps safeguard both consumers and professionals in the real estate market. This timeframe aligns with best practices in record-keeping for financial transactions, ensuring that both parties have access to pertinent information as needed while also preventing the undue burden of maintaining records for an excessively long period.