How long should all documents related to the real estate transaction be kept after closing?

The correct answer is that all documents related to the real estate transaction should be kept for a minimum of five years and for an additional two years after the conclusion of any litigation, whichever occurs later. This is important because retaining these documents ensures compliance with legal requirements and provides a safeguard for both the real estate professionals and their clients against any potential disputes or claims that might arise in the years following a transaction.

Real estate transactions typically involve multiple documents, including contracts, disclosures, and financial statements that could be subject to review or legal challenge long after closing. By adhering to this retention policy, professionals can protect themselves and help ensure that they are prepared to address any issues that might arise post-transaction.

In contrast, the other options provided suggest shorter time frames that do not encompass the possibility of ongoing litigation or disputes related to the transaction, which can be crucial in real estate dealings. Thus, maintaining documents for at least five years plus an additional two years post-litigation conclusion serves both compliance and risk management purposes effectively.