To Shred or Not to Shred? Alabama Real Estate Records Retention
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.

