Kovats Real Estate School Practice Test

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Prepare for the Kovats Real Estate School Test with our comprehensive flashcards and multiple choice questions, featuring detailed explanations and hints. Achieve success on your exam!

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For how long must a broker keep permanent records of other persons' funds?

Four years
Five years
Six years
Ten years

The correct answer is: Six years

A broker is required to keep permanent records of other persons' funds for six years. This requirement is in accordance with regulations that aim to ensure transparency and accountability in handling client funds. Maintaining such records for this duration allows for proper auditing, tracking, and compliance with legal obligations if disputes or inquiries arise regarding financial transactions. While some other time frames may exist for different types of records or transactions in the real estate sector, the six-year period specifically pertains to the handling of trust accounts and related financial matters. This time frame provides a reasonable balance that supports both record-keeping efficiency and consumer protection. Proper adherence to this requirement helps protect both the broker and the clients they serve.