What should a broker's transaction file generally contain?

A complete transaction file documents the deal and demonstrates compliance. It typically includes the listing agreement and any buyer-representation agreement, the purchase contract and counteroffers and amendments, required disclosures (agency, property condition, lead-based paint where applicable, and others), inspection and contingency records, and documentation of any trust funds received and disbursed. Keeping these records organized and for the period state law requires allows the broker to respond to audits, complaints, or disputes. The specific documents and retention periods vary by state, but maintaining thorough transaction files is a recordkeeping responsibility the state broker portion expects brokers to understand.