What document must a broker keep for three years following a sale?

The requirement for brokers to retain certain documents for a specified period after a sale is a key aspect of real estate record-keeping. The correct choice here is the Lead-Based Paint Addendum. This document is particularly important because it pertains to federal law, specifically the Residential Lead-Based Paint Hazard Reduction Act, which mandates that sellers and landlords disclose information about lead-based paint in properties built before 1978. The addendum must be provided to purchasers, and brokers are required to keep this documentation for three years after the sale to comply with the regulations, ensuring that buyers have been appropriately informed about potential lead hazards.

In contrast, while other documents such as the Earnest Money Contract, Disclosure Statement, and Closing Statement serve crucial roles in a real estate transaction, their retention periods can differ based on state law or other factors. For instance, disclosure statements may have different retention requirements depending on state regulations, and closing statements are often retained for a shorter duration by brokers compared to the lead-based paint documentation. Therefore, the specific three-year retention requirement for the Lead-Based Paint Addendum highlights its unique significance in protecting public health and ensuring legal compliance in real estate transactions.