Tech Corner

Cloud storage platforms make it easy to manage transaction files from anywhere, but convenience does not replace compliance.

According to Rule 58A .0108, brokers shall retain records of:

• all sales, rental, and other transactions conducted in their brokerage capacity,
• whether the transactions are pending, completed, or terminated.

This Rule mandates that all brokers are responsible for retaining transactional files and documents related to their brokerage activity.  The record retention requirements apply:

• from the inception of the agency relationship;
• while the transaction is pending;
• when the transaction is consummated; or
• after the agency agreement is terminated.

The Commission acknowledges that brokers may want to electronically store their records and cloud storage platforms can be an effective compliance tool for brokerages. However, brokers should ensure transaction documents/files are retained and BICs should have clear written policies addressing access to cloud storage platforms, file security, and the accessibility of records if a broker’s affiliation with the BIC is terminated.

Takin time to evaluate your digital record retention practices now can help ensure your record retention is in compliance with License Law and Commission Rule 58A .0108.

NOTE: Rule 58A. 0108(c) indicates that all records must be made available for inspection and reproduction by the Commission or its authorized representative without prior notice.