Modern technologies enable real-estate firms to address ambiguous property compliance issues.
FREMONT, CA: Real estate compliance includes a set of regulations that govern property and its components. Further, the rules are constantly increasing every year. Addressing the complex regulations is the key to managing a real estate portfolio with assets in various locations. Employing technology for this cause can offer a significant advantage to real estate firms. Unfortunately, most agents and brokers who get into compliance issues make simple errors such as failing to keep required records or not paying complete attention to funds management. While the mistakes can be simple, regulatory measures may be harsh, ranging from consequences to loss of license.
Historically, compliance processes required enormous quantities of office work. Brokers and admins needed to affirm each element in each paper transaction manually. The methods included extensive manual checklists that could encompass everything from double-checking the transaction and counting the individual pages to ensuring it included all dates and signatures. Once the deal was closed, admins had to file several pages for each transaction in the storage cabinets, organized so that auditors could access requested files for up to a few years. The requirement of physical space alone posed a significant challenge. However, with a rise in technologies and digitalization, transaction records can be digitally stored, eliminating a physical space.
Technology offers a single platform solution to address all compliance issues. The current transaction platform provides a streamlined compliance process for agents, brokers, and administrators. For example, property information and client data need to be entered once initially, which can be auto-filled after that, eliminating the requirement to re-enter data. Further, transaction administrators can also set up time-saving automated processes that minimize the chances of errors. Additionally, all editing, document creation, signing, reading, and client communication can be carried out under a single roof, tracking inside an accurate timeline that records all activity.
While compliance issues can be challenging to manage, modern technologies offer alternative solutions to deal with the same. Therefore, identifying the appropriate technology and implementing it as per the existing real-estate regulations will be the key to addressing compliance issues in the future.
