What must be preserved for five years to avoid the loss of a real estate license?

To maintain an active real estate license, it is essential to preserve all client records after a transaction has been completed for a period of five years. This requirement is significant because it ensures that there is a clear record of all client interactions, transactions, and any pertinent information that could impact future dealings or address potential disputes.

Keeping accurate and comprehensive records helps protect both the real estate agent and the client, as these documents can be referenced if any questions or legal issues arise after the completion of a transaction. The five-year retention policy aligns with regulatory standards and promotes transparency and accountability within the real estate profession.

Other materials, such as office supply receipts or legal documents with attorneys, do not fall under the same stringent retention laws concerning client records. Similarly, while listing agreements are important, they are typically governed by different regulations regarding their retention, often not requiring the same duration. Thus, the preservation of client records for five years stands out as the correct answer in this context.