Leasing License Practice Exam

How long must both the Notice of No Agency and Disclosure of Tenant's/Lessee's Designated Agent forms be kept on file?

1. 3 years

2. 5 years

3. 7 years

4. 10 years

The correct answer is: 5 years

The correct answer is that both the Notice of No Agency and Disclosure of Tenant's/Lessee's Designated Agent forms must be kept on file for a period of five years. This requirement ensures that documentation related to the agency and representation in lease agreements is retained for an appropriate amount of time, allowing for any future disputes or inquiries to be addressed with verifiable records. Retaining these documents for five years provides a reasonable duration for legal accountability and compliance with relevant regulations, reflecting best practices in the leasing industry. Maintaining documentation for a shorter time period may not provide sufficient coverage for any arising issues or changes in circumstances, while a longer retention period could be unnecessary and cumbersome for property managers or landlords. Thus, five years serves as a balanced timeframe for keeping these critical forms.