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Privacy and the Real Estate Industry
By Darity Wesley
As you have probably noticed, privacy and information security are hot topics. So hot that the country´s leading professionals are discovering that the increase in the use and integration of technology in the real estate industry brings privacy, security and real estate together in a very large way. And as every successful agent and broker knows, information, particularly personally identifiable information, is a very valuable commodity and becoming more precious daily.
Every year a barrage of "Privacy Notices" are sent from credit card and insurance companies, accountants, and most businesses that collect information about you. Did you wonder why you received these notices? They were sent in compliance with a bill passed by Congress called the Gramm-Leach-Bliley Act or "GLBA".
Like most of us, you may have been too busy to read these multi-page, very small print privacy notices. You do need to know, however, that the concept of protecting the use and access to client's information extends beyond banks and financial institutions. In Canada, effective the first of January, 2004, every business has the responsibility to protect client and employee information. In California, the Online Privacy Protection Act of 2003 was passed which states that any operator that collects personally identifiable information from a California resident through an Internet Web site or online service for commercial purposes, must post its privacy policy on its Web site or online service and comply with the policy. This bill becomes operative on July 1, 2004. Almost every other state in the United States is considering or has such legislation.
Clearly, consumers shopping for a new home and selling the old one are not the same as they used to be. Buyers are turning more frequently online to look at homes. The NAR 2003 "Profile of Home Buyers and Sellers," reports homebuyers are turning more and more to the Internet to look at homes (93%) and to get neighborhood information (22%). In 2001 when my firm Privacy Solutions™, Inc. was founded, first time homebuyers represented 40% of the total online home buying population (State of Online Real Estate, July, 2000, Gomez.com). That means that two-thirds of buyers in the first half of 2003 used the Internet to search for a home!
So where does privacy fit into this? Wireless PDAs, transaction management software and electronic transfer of documents, among many other new technologies, extend the possibilities for interruption, misuse or inappropriate access to your client´s data. That sensitive data is now electronically available and whether your know it or not, your clients have concerns about what you do with it as evidenced by the recent consumer outcry against spam and telemarketing.
You need to be aware that consumers are challenging the use and misuse of data at all business levels. They are demanding government regulation and these government-mandated privacy regulations are changing the way the world does business. Business executives and agents in the real estate industry are just now realizing this is an important area of consumer service to be addressed.
The Federal Trade Commission (FTC) is the agency charged with enforcement of these regulations and they have increased their review of its rules and guidelines and have stepped up their enforcement for non-compliance. The FTC has folks that "surf the net" every day to check out whether or not a website has a privacy policy or statement.
Have you got privacy? Is your website privacy policy in place? Do you have a plan for how to balance your need for information and your clients´ concerns about what you are doing with it? Are you protected from potential liability by instituting Fair Information Practices?
If you answered yes to all these questions, then answer this one: Are you using this business leadership as a marketing tool?
Remember, privacy is a simple as ABC:
A Always do your best to protect your client´s information;
B Be sure to tell them what you are doing with it; and
C Convey this clearly and conspicuously.
Darity Wesley, CEO & Legal Counsel of Privacy Solutions, Inc. is a 20 year veteran of the public record and real estate information industry. Privacy Solutions, Inc. creates privacy options for industry, particularly focused on the public record and real estate industries. For information about Keynote Presentations and consulting, contact Frog Pond at 800.704.FROG(3764) or email [email protected]; http://www.frogpond.com |