Chapter 8: Records and documents

baking records must be retained for ______ years

2 -3 years

IRS requires a ________ year retention period for certain records and _________ years for tax records

2 year, 7years

How long does the IRS require owners of closed firms to retain business records, with a specific disposition for financial records, tax records, and personnel records?

2 years

Employing withholding records must be retained for at least _____ years

4 years

Employee termination records must be retrained for _______ years

5 years

Other brokerage personnel records, such as employee contracts, need to be retained for _______ years

6 years

Mississippi broker Ben is conducting his annual purge. Each of the following transactions was consummated three years ago. Which transaction records, if any, must be retained?

A purchase that's being litigated

Which of the following types of real estate transaction-related documents must be retained in Mississippi?

Both physical and electronic documents

It's the end of an era, you might say. Mississippi brokerage Luna Realty is closing its doors after 30 years of serving the community. How long does Luna Realty have to retain its transaction-related records, according to MREC rules?

Records must be retained for three years following each transaction's consummation. - According to MREC rules, the brokerage must maintain complete records for any real estate transaction for three years following its consummation. That rule applies even if the brokerage closes.

After 25 years in business, Mark is closing his brokerage firm to move closer to his grandchildren. What should he do with the brokerage tax records?

Retain them permanently.

Why must a Mississippi firm's files be stored in a readily accessible place?

So MREC can easily review them.

is a request to the courts for clarification and a determination.

an interpleader suit

Mississippi Publice Records act

enacted to ensure public has access to certain records

Does MS require electronic records?

no

Licenses must immediately provide parties with a copy of any document upon________

signing

The federal Electronic Signatures in Global and National Commerce (ESIGN) Act

specifies that the use of a digital signature is as legally valid as a traditional signature that's written in ink on paper, thus establishing that electronic contracts, e-signatures, and other electronic records are legally equivalent to paper counterparts.

When are brokers required to provide MREC with access to records?

upon request

Should you keep all notes and emails from a transaction?

yes

Both parties to a transaction signed a Mississippi purchase offer electronically. What kind of contract does it make it?

.The contract is both valid and enforceable.

The IRS requires owners of closed firms to retain business records for a minimum of two years, with a specific disposition for financial records, tax records, and personnel records to include:

1) Certain brokerage financial records should be retained permanently, while other brokerage financial records need to be retained for five to seven years. 2)Banking records must be retained for two to three years 3).Brokerage tax records need to be retained permanently. Other brokerage tax records, such as payroll tax returns, must be retained for at least seven years. 4)Employee withholding records must be retained for at least four years. 5)Most brokerage personnel records should be retained permanently. Other brokerage personnel records, such as employee contracts, need to be retained for six years. 6)Employee termination records must be retained for five years.

Required documents to be kept?

1) Listings 2) Options 3) Leases 4) Offers to purchase 5) Contracts of sale 6) Escrow records 7) Agency agreements 8) Copies of all closing statements

Mississippi brokers must keep all transaction-related records for _____________ years following the consummation of each transaction?

3

How long must brokerages maintain complete record even if they close?

3 years

MREC requires brokers to retain all of the following records for at least three years EXCEPT for which one? 1) A binding purchase agreement 2) A business receipt for the firm's internet ads 3) An executed lease contract 4) An expired listing agreement

A business receipt for the firm's internet ads requires brokers to keep complete records related to any real estate transaction. Unless the internet advertising is tied to a specific transaction, MREC doesn't require the broker to retain it. However, the broker may retain according to IRS guidelines for any business- or tax-related records.

When a brokerage closes for any reason who has a say in the firm's disposition of its records?

MREC and IRS

Which act specifies that the use of a digital signature is as legally valid as a traditional signature that's written in ink on paper, thus establishing that electronic contracts, e-signatures, and other electronic records are legally equivalent to paper counterparts?

The federal Electronic Signatures in Global and National Commerce (ESIGN) Act

which act requires that consumers consent before electronic records can be used to provide them with information that must legally be made available to them in writing.?

The federal Electronic Signatures in Global and National Commerce (ESIGN) Act

What act gives electronic signatures, records, and contracts legal recognition equal to that of paper records and traditional ink signatures?.

The federal Uniform Electronic Transactions Act (UETA)

Which of the following documents should be retained in a client's folder in Mississippi? 1) All of these 2) copies of emails 3) copies of handwritten notes with instructions 4) transaction-related information and delivery confirmations

all of these

What type of transaction does MREC not require the broker to retain in a transaction?

any internet advertising

The federal Uniform Electronic Transactions Act (UETA)

gives electronic signatures, records, and contracts legal recognition equal to that of paper records and traditional ink signatures.

An interpleader action

is a civil procedure that's initiated when two principals disagree about their rights, obligations, or the meaning of escrow instructions. An interpleader suit is a request to the courts for clarification and a determination.

Any information related to __________ proceedings that's contained within the transaction file is exempt from routine recordkeeping time frames. Consult an attorney (and/or your sponsoring broker) to determine how long you must retain these documents.

litigation

If transaction records are maintained electronically, does the same retention requirements apply to the electronic records that apply to hard copy records, and MREC must be allowed to access the electronic documents upon request?

yes