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Q: “Does my firm have to retain physical paper records for all real estate transactions, or can we maintain records in an electronic format?” 

A: Title 18 of the Virginia Administrative Code section 135-20-185 includes the specific regulations governing record retention and maintenance for real estate brokers. The various subsections cover financial records, bookkeeping and record keeping, and records pertaining to specific real estate transactions. Generally, brokers must keep all financial records, disclosures, brokerage agreements, and contracts for a minimum of three years.  

However, the regulations are silent as to the format for maintaining records, and keeping records in an electronic format is not prohibited. Each firm should include in its document retention policy where documents need to be kept, how documents are to be kept, whether agents are to keep separate copies, procedures for document destruction, and agents’ responsibilities for compliance. It is best practice for brokers to consult with tax and legal counsel for appropriate retention policies. 

Keep in mind that whether records are kept physically, electronically, or both, they need to be readily accessible because a licensee must produce records requested by the Real Estate Board within 10 days of request. (18 VAC 135-20-240.)  

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