Keep It or Toss It? Best Practices for Record Retention in North Carolina Real Estate
In the busy world of real estate, it’s easy to get buried in paperwork—from contracts and disclosures to text messages and emails. But when it comes to record retention, it’s not just about staying organized—it’s about staying compliant.
In North Carolina, the North Carolina Real Estate Commission (NCREC) sets clear expectations for how long brokers must retain certain documents and what types of records are required. Here's what every agent and firm should know.
How Long Should You Keep Real Estate Records?
According to NCREC rules, **brokers must retain records for a minimum of three years following the conclusion of the transaction or the termination of the agency agreement, whichever occurs later.
This includes:
Agency agreements
Offers and contracts (even if the deal didn’t close)
Addenda and disclosures
Correspondence related to the transaction (yes, that includes texts and emails!)
Trust account records (for brokers handling client funds)
Best Practices for Staying Compliant
1. Create a Centralized Record-Keeping System
Whether it’s a digital cloud-based system or a physical file cabinet, make sure your records are stored in one secure location that’s easy to search and audit.
2. Save Communications—Even Texts
If you discuss terms, prices, or advice with clients via text or email, those messages become part of the transaction record. Screenshots or export tools can help you save these properly.
3. Go Digital and Back It Up
Paper records are fine, but digital records offer better security and longevity. Just be sure to use secure, encrypted storage—and back everything up regularly.
4. Train Your Team
If you manage a firm, make sure every broker-in-charge and affiliated broker understands what needs to be kept, where, and for how long.
5. When in Doubt—Keep It
It’s better to have too much documentation than not enough, especially if a complaint or audit arises later on.
What Not to Do
Don’t delete client files immediately after closing. That 3-year clock doesn’t start until the transaction or relationship officially ends.
Don’t assume your CRM is backing up everything. Verify how long platforms store data and whether you can export records easily.
Don’t ignore electronic records. NCREC treats digital and physical records equally under the rules.
Stay Smart with Providence
Record retention might not be the flashiest part of real estate, but it’s a foundational piece of compliance, professionalism, and protection. At Providence Real Estate Education, we’re here to help you build a career that’s not only productive—but protected.
Need a refresher on compliance and risk management?
Check out our upcoming CE courses —and stay ahead of the curve.
