Final answer:
A designated broker typically must retain copies of paperwork related to a closed real estate transaction for 3 to 5 years, depending on state regulations.
Step-by-step explanation:
In real estate, the period of time a designated broker must retain copies of the paperwork associated with a closed transaction can vary depending on state regulations. Generally, however, the retention period is around 3 to 5 years after closing or termination of the transaction, but in some cases, it can be longer. It is critical for brokers to familiarize themselves with their specific state laws and regulations to ensure compliance, as failure to maintain records for the required period can result in legal and professional consequences.