Under Montana law, how long must a real estate licensee keep transaction records?

In Montana, real estate licensees are required to keep transaction records for a duration of five years. This rule is in place to ensure that there is adequate documentation of all real estate transactions, which can be crucial for various reasons, including tax purposes, resolving disputes, or complying with regulatory audits. Retaining these records for five years accounts for the typical statute of limitations for many legal claims that may arise from transactions.

This five-year period is consistent with national best practices in the real estate industry, allowing for a balance between thorough record-keeping and the practicality of space and resources. After this period, the records can be safely disposed of unless there are specific circumstances that require extending the retention of certain documents beyond the standard time frame.