If Licensee D works out of a home office, for how long is she required to maintain records of closed transactions?

• A. Affiliated licensees are not required to maintain records of closed transactions
• B. 1 year
• C. 3 years
• D. 5 years

Answer: (A)

The main idea here is that record-keeping for closed transactions is the broker’s responsibility, not the individual licensee’s. When a licensee works under a sponsoring broker—even from a home office—the broker must maintain the transaction files to comply with state rules. The licensee isn’t assigned a separate retention period for those closed records; their obligation is to cooperate and provide documentation as needed, while the broker preserves the records for the required time at the brokerage level. Because of that, there isn’t a standalone duration that an affiliated licensee must personally retain closed-transaction records. That’s why the statement that affiliated licensees are not required to maintain those records is the best answer. The other timeframes imply a personal retention duty for the licensee, which does not apply when the broker holds the records.