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 as well as their components. Further, the regulations 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. Most agents and brokers who get into problems over compliance issues make simple errors such as failing to keep required records or don't pay complete attention to the management of funds. While the mistakes may be simple, regulatory measures can be harsh, ranging from penalties to even loss of license.
Traditionally, compliance processes required enormous amounts of paperwork. Brokers and admins had to verify every detail in each of the paper transactions manually. The processes 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 a number of pages for each transaction in the storage cabinets, organized in a way 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, thereby eliminating the need for a physical space.
Technology offers a single platform solution to address all compliance issues. The current transaction platform offers a streamlined compliance process for agents, brokers, and administrators. Property information and client data need to be entered once at the beginning, which can be auto-filled thereafter, thereby eliminating the requirement to re-enter data. Further, transaction administrators can also set-up time-saving automated processes that minimizes the chances of errors. Further, all editing, document creation, signing, reading, and client communication can be carried out under a single roof, which can be tracked inside an accurate timeline that records all activity.
While compliance issues can be difficult to manage, modern technologies offer alternative solutions to deal with the same. Identifying the appropriate technology and implementing it as per the existing real-estate regulations will be the key to address compliance issues in the future.
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