For how long must records related to trust accounts be retained?

Records related to trust accounts must be retained for a period of 3 years. This retention period is essential for compliance with regulatory requirements and to ensure transparency in financial transactions involving client funds. Trust accounts are used in real estate transactions to hold money that belongs to clients or customers, and maintaining detailed records for three years allows regulatory bodies to review transactions and verify that funds are being handled appropriately. The three-year period strikes a balance between being sufficient for audit purposes and not overly burdensome for real estate professionals. This timeframe aligns with the need to keep comprehensive records while adhering to legislative and ethical standards in the real estate industry.