For how many years must records relating to escrow and security deposits be maintained by a title agency?

A title agency is required to maintain records relating to escrow and security deposits for a period of seven years. This retention period is crucial for ensuring compliance with legal and regulatory requirements, as it allows for the necessary auditing and review of transactions in case of disputes or investigations.

By maintaining records for seven years, the agency provides a safeguard not just for itself, but also for its clients and stakeholders. It helps track the flow of funds, ensures that all transactions are properly documented, and enables the resolution of any potential claims or audits that may arise in the future.

The choice of seven years aligns with the general practices of many financial and real estate-related fields, where similar retention periods are established to cover the statute of limitations for claims and disputes, thereby reinforcing the obligation to maintain comprehensive records.