How should the real estate industry rethink document safety?

document safety

When it comes to real estate document management, the safety and security of records containing personal information about the client are critical. Estate agents bear a significant amount of responsibility for the appropriate administration of documents regarding the property transactions they supervise. In addition, they must adhere to various rules and legal obligations to store multiple types of contracts and agreements. Managing any form of document in this sector demands necessary skills and experience. The ideal choice is outsourcing real estate documentation to well-established businesses with the required resources and knowledge to make things easier.

Physical theft of information or a hack is the most prevalent cause of data and security breaches. Social security numbers, addresses and names, bank account numbers, pin codes, and other financial information are amongst the items that might get stolen. Upon each transaction, the real estate agent seeking sensitive client information is responsible for preventing that client information from being compromised due to loss, abuse, theft, or destruction.

Suppose a client’s identity or financial information is compromised while in your care; they have the right to sue you and your brokerage for the information leak or the cash lost. Having a secure server and security software are generally the most common security measures an organization can adopt to defend against data loss.

Real estate firms need to manage, share and track the flow of all your real estate documents to avoid data breaches and subsequent real estate litigation. Few aspects that need special attention when focusing upon document safety and management are: –

Data security:

Data security is essential in real estate since agents typically deal with high-value transactions, and all the information must be processed and preserved with the utmost confidentiality. The firms should use sophisticated tools to ensure that there may be no breach of security. Therefore, using document management software or outsourcing to document management businesses may be beneficial in keeping all of your documents safe and secure.

Regulatory Compliance:

Every real estate transaction will have to adhere to specific legal requirements. As a result, real estate companies must maintain track of all documentation, including offers, contracts, appraisals, sales reports, titles, disclosures, and loan agreements as and when required by the local authorities. Unfortunately, the manual approach and endless searching for physical documents make it challenging to acquire all of the information in an orderly manner. Therefore, having an in-house legal and compliance department with the necessary knowledge and technology will assure total compliance.

Cost-effective Storage:

The right document management system will allow you to store any amount of customer data and company documents. In addition, it will offer quick access to information when the records are digitized. Real estate paperwork is crucial, whether for a business or a customer, and must be handled skillfully and in proper order. Using document management software rather than paying someone in-house to manage everything will be a more convenient and cost-effective alternative.

I. STANDARD PRACTICES FOR SAFE DATA HANDLING

When storing client information, avoid using flash drives. Viruses can quickly destroy or damage these files. And you should never use a flash drive unless you know the origin. This is a typical hacking tool, and infected flash drives are given away as “freebies” at real estate offices. When sending or emailing documents to a customer or other parties engaged in the transaction, use password-protected files. The receiver must provide a predetermined number or the last four digits of their social security number for accessing essential documents.

To authorize fund or wire transfers, establish a validation procedure that includes email and voice/phone call confirmation. If you rely entirely on email, hackers may be able to simply fake email transfer requests. However, real estate firms can use ProofEasy, which provides a safe and secure interface for sending and receiving documents in a fast, centralized database without the need for business applications. The user has the option to verify their ProofEasy documents to the document displayed on the results page.

Consult a specialist when setting up an electronic records-keeping management system to guarantee proper installation and user education. Ensure the firewalls and virus prevention software are up to date and run a semi-annual check on them. Furthermore, you can also set up an automated file backup system to ensure that information is not lost if a machine is hacked or infected with a virus during a data theft attempt. Lastly, maintain order in your records and file management. Delete or discard all out-of-date papers to ensure that the record-keeping system is not clogging the system with irrelevant information.

Instead, you can choose to use ProofEasy, which places a QR code in all the submitted documents and securely saves it in the ProofEasy server.

II. PHYSICAL DATA DISCRETION AND SAFE HANDLING PRACTICES

Professionalism, expertise, and discretion are the cornerstones of effective document handling best practices. Some of the most typical document security measures that a real estate agent can take include:

Security compliance: It is vital to cover critical documents and never leave documents unattended. Using high-end tools is recommended to make sure there is no breach of security. For instance, real estate companies should use one secure cloud-based storage to store all the client’s data and documents. Access to cloud storage should be provided to selected people appointed with the roles and responsibilities of managing and organizing the cloud data. ProofEasy verification engine authenticates the hash on the blockchain and displays the original document that was secured using the ProofEasy platform. They provide access to blockchain ID only to those who possess the original QR code.

Backup your data: Physical data, unlike electronic data, is susceptible to wear and tear. A tangible piece of information gets destroyed by a flood, fire, or mold. Take measures to replicate the document electronically, such as scanning the paper to preserve it.

Physical data must be kept in a safe place: At all times, windows, doors, and cupboards should be locked. The persons who have access to these locations must be listed, and the number of people on the list must be limited to a bare minimum. In places where private customer data is maintained, visiting clients should not be left alone.

Well-labeled documentation can help to reduce inter-department loss: Clear labeling of physical documentation can help prevent interoffice loss. Labeling plays a massive role in making sure the documents exist in the right place. These documents can be found at any time within any given scenario. Proper labeling helps identify the documents for their proper usage and helps maintain the order of the papers. ProofEasy uses QR codes placed in the submitted document and securely saved in the ProofEasy server.

Keeping track of old and new documents: Clutter can cause the loss of various important documents. Delete old physical data regularly. On-site document shredding services are available, or you can shred and dispose of your papers yourself. Please keep track of which papers were destroyed and when they were destroyed.

ProofEasy utilizes technology the right way to ensure unified distribution of tamper-proof documentation amongst all people involved in a particular project. Using ProofEasy provides trustworthy documentation for financial exchanges.

Conclusion

Different situations demand a different response. Nothing is set in stone. While these steps can help prevent litigation against real estate, there are chances that the client’s data or the physical documents stored in offices will get tampered with and misplaced. Using ProofEasy ensures trustworthy and tamper-proof documentation for financial exchanges. Proceed with an action plan which safeguards the interest of the real estate firm. Protecting the rights of the firm and client is essential to maintain the status quo.

Using ProofEasy will ensure seamless protection and verification of your documents with the help of a unique QR code generated by VeriDoc Global Security. In addition, they provide access to blockchain ID only to those who possess the original QR code.