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New and ever more sophisticated digital platforms continue to transform the real estate industry. The quantity of consumer data has been exploding as a consequence. Real estate companies need to sit up and take note.
There’s a pressing need for them to keep up with new technological systems. They also need to ensure effective privacy protections for their customers. Find out how they can do this better as we delve into the world of data privacy and real estate.
The Obligations of Real Estate Companies
Personally identifiable information (PII) lies at the heart of customer data collected in real estate sales and marketing. Property searches, mortgage applications and the documents needed to complete a sale are all awash with PII.
There is a raft of new privacy requirements backed up by laws and regulations. These include the California Consumer Privacy Act (CCPA) as well as Europe’s General Data Protection Regulation (GDPR) and the Gramm–Leach–Bliley Act (GLBA).
They apply to real estate companies. That means those in the industry need to understand their obligations in terms of how they obtain, use, share and store data. If they don’t, the fines and penalties can be eye-watering, sometimes enough to lead to bankruptcy.
Understanding Data Collection
Technology has a part to play in almost every part of real estate buying, selling and rentals. For example, when a customer carries out a simple property search online, it’s likely that they will enter contact and financial details.
They'll often do this to discover more about the property or their financing options. These types of inquiries can set off an initial credit check. The subsequent sale of this information to agents and lenders who have a deal with the property-search platform can happen too.
Any company that gets hold of a consumer’s PII needs to have policies and practices in place that reduce the risk of data abuse. At the very least, companies must understand:
- The kinds of data coming in and out of their organization
- Who has access to that data and the reasons why
- Whether there is any encryption when they store the data
- How to respond to consumer requests to stop sharing their data
How to Control the Flow of Data
Applying privacy policies with the help of in-house data engineers or external experts will clearly help. This can ensure:
- A business doesn’t collect data it doesn’t need
- That the data has appropriate privacy security controls
- That the company disposes of data appropriately
Some real estate businesses use the services of technology providers. If so, they must also understand the practices and policies of these providers. That’s to make sure of regulatory compliance along with issues around potential liability dues to the misuse of data by a business partner.
Pitfalls in Data Collection and Storage
Here’s an example of how a real estate agency could get caught out. Legislation in New York City now puts restrictions on landlords and property managers. This includes using data related to keyless entry cards.
They have to limit the use of these cards to simply granting access to a building or a common area, for example. Companies can only use the minimum information essential to controlling access. They also have to encrypt that data as well as adhere to strict rules related to data removal, deletion and anonymization. Any violations could lead to regulatory fines or private litigation.
More generally, lease and sales agreements need amending. This means including privacy-related statements about how data gets generated, stored and used.
Mitigating Risk
To protect individuals and themselves, real estate agents and brokers can redact certain specific information from contracts, public land records, and other transactions. Of course, any omissions would have to happen in a way that does not hold up normal business activities.
Let’s take public land records that are essential for defining ownership of specific real estate. A broker, agent or realtor could redact specific parts of the documents or sanitize an entire record. That would prevent unauthorized access to sensitive information.
Some federal regulations even require the removal of specific data. The GLBA imposes limits on when a financial institution can disclose a customer's “nonpublic personal information” to third parties.
The GLBA covers real estate transactions and banking institutions. Agents must protect data related to a person’s name. This includes:
- Social security, bank account, debit or credit card numbers
- Driver’s license and state ID card numbers
- Login and password Credentials
The Benefits of Automated Redaction
Coming up with a way to handle redaction as part of the huge quantity of paperwork related to handling real estate transactions can become time-consuming and ultimately expensive.
When a real estate firm uses an automated redaction software system like iDox.ai, it can reduce manual redaction from hours to seconds in a few clicks. This lets realtors concentrate on their clients, sell more homes, have more family time and just relax.
The Benefits of iDox.ai
iDox.ai uses artificial intelligence and automation that result in a reduction of labor hours to a fraction of what they were before. Automated redaction software can also mean far higher levels of accuracy compared with carrying out the process manually.
If a data breach happens, it can create costly penalties for realtors and serious problems for their customers. It can also generate a substantial amount of bad publicity.
Accuracy of redaction using AI can make mistakes almost impossible. A realtor sets the specified parameters. Once they do that, the software will automatically remove set data points. This includes names, faces and social security numbers. That leads to safe documents completely ready for processing.
iDox.ai Is Simple to Use
Companies can train their staff in how to use idox.ai quickly and efficiently. This benefits the whole business. It draws everyone’s attention to the dangers involved in data storage but offers a solution with everyone on the same page.
It protects the data that the company keeps on its computer systems from breaches or fraudulent misuse.
It makes sense for realtors to select the most accurate and simple-to-use redaction software on the market. Sign up to iDox.ai now. Put an end to the worry that the storage of your documents is not compliant. Save time and money as well as eliminate risk.