If you are an avid follower of our blog, you already know that the information we at Filetwin aim to provide, although a bit boring, is a necessity for doing business.  Today we discuss record retention requirements for the Apple Blosson State, Arkansas, corporate home to global business giant Wal-Mart.  It is relatively easy to find a retention schedule for veterinary records or tax records for Arkansas.   However, it’s somewhat more challenging to pinpoint how long Brokers should retain documentation for real estate transactions.

We did manage to find a reference on page 56 of this book:  Arkansas Real Estate Basics, from Dearborn Financial Publishing, 86 pages, available on Amazon.com.   “Brokers should retain copies (of executed instruments) in their files for at least three years”, at least being the operative words here.

As good journalists, we did some fact checking and went directly to the source, the AREC.  Well, also because we didn’t see the need for you to spend $208.51 on the paperback version.  Not having much luck deciphering the Arkansas Real Estate Commission (AREC) website, we resorted to old-school methodology and put a call into the AREC main office in Little Rock, 501-683-8010.  A very helpful clerk at the Investigations Department, did indeed confirm that Broker Records must be retained for at least the three year period, referencing Page 64, Section 10.4, Law and Regulations:  Broker Responsibility (2010 version).   Further research brought us to page 12 of the Arkansas General Records Retention Schedule Procedural Handbook, which suggests that “land title and real property records”, because they have historical value, should be included in the Permanent Records category, known in layman terms as the do-not-destroy category.  Digging deeper still, the table on page 15 denotes that Legal Records, that is any document of legal importance, should be retained at least 3 to 5 years.

Regulatory requirements for records retention is serious business.  Whether you are a global giant like Wal-Mart or a local real estate broker, we can help your company stay in compliance.  Our Back-up Specialists are ready to answer your questions.  Call us at 877-310-2884 for a no-cost evaluation of your back-up needs.  Filetwin, because you need two.

We continue with our blog series on Real Estate Records Retention, this time focusing on the Yellowhammer state.  Chapter 27 of the Code of Alabama establishes creation of a Real Estate Commission, and stipulates the rules and regulations governing Real Estate Brokers and related transactions in the Heart of Dixie.  Therein, the Records Disposition Authority, Section 3, states that Real Property Files and Inventory Lists are deemed Permanent Records; this means they cannot be destroyed.  It also states that these permanent records are to be retained in office, “in an environment that will ensure their physical order and preservation”.

With the lines between different financial institutions blurring more each year, the Alabama Department of Banking has also addressed records retention for real estate transactions.  They require  loan files, as well as real estate owned and repossessed assets files (including supporting documentation and records)  be retained for life plus three years. Ouch!  The Better Business Bureau of North Alabama has come to the rescue and compiled a “when to shred” list which business owners as well as consumers should keep handy.   According to the BBB, contracts, mortgages, notes, and deeds still in effect should be kept permanently, i.e. Do Not Shred!, while those that have expired, can be shredded after seven years.

Life plus three years is definitely a long time to keep any document, much less keep it in good condition.   Companies sometimes change their physical address.  Often older records are boxed and sent to storage warehouses where conditions are not prime.   The good news is that you can easily back-up and access your files online using today’s technology at a fraction of the cost.  When it comes to record retention strategies for regulated industries, like Real Estate, Filetwin can be your best ally.  Call us today and speak to one of our back-up specialists at 877-310-2884.

In these times of Foreclosure Frenzy, don’t be caught off guard without the ability to access your past real estate and mortgage transactions.   We are focusing today on Virginia, a state close to the nation’s capitol where the Financial crisis is being addressed.  Real Estate transactions in Virginia are governed by the Department of Professional and Occupational Regulations, which has created a Real Estate Board for this purpose.   In the Commonwealth of Virginia, a Real Estate Broker must maintain records of all transactions in his/her office  for at least three years .  These records, according to the Virginia State Legislature, may be in electronic format.  However, Real Estate Appraisers in the Old Dominion state are subject to more stringent requirements, and must keep all records for at least five years after preparation, and another two years after final disposition.  For more details you can call the Virginia Real Estate Board at (804) 367-8526 or email them at Board for Real Estate.

Three to seven years is a long time to keep paper files of transactions, or disks of data that may not be appropriately labeled.  With all the foreclosed homes coming to market, it’s important to have a history of those properties in your database, in the event of any future investigation by banks, mortgage companies or government agencies.  Electronic data back-up is the safest and most reliable way to keep important date for later online access.   Online data back-up and access systems like Filetwin, are highly recommended for regulated industries like Real Estate.  Call us today and speak to one of our back-up specialists at 877-310.2884.  Filetwin, because you need two.

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