Advanced technologies are addressing property compliance issues to manage a real estate portfolio with assets in different locations.
FREMONT, CA: Real estate compliance comprises a set of laws that govern properties and their components. Further, the regulations are continually increasing each year. Addressing the sophisticated regulations is the answer to managing a real estate portfolio with assets in different locations. Employing technology for this event can provide a vital advantage to real estate firms. Most realtors who get into difficulties over compliance concerns make simple mistakes like failing to keep needed records or don't pay total attention to the administration of funds. While the errors may be simple, regulatory actions can be harsh, varying from penalties to even loss of license.
Conventionally, compliance processes needed enormous amounts of paperwork. Brokers and admins had to check each and every detail in each of the paper transactions in a manual process. The methods included comprehensive manual checklists that could incorporate everything from double-checking the transaction and counting the individual pages to guaranteeing it included all dates and signatures. Once the deal is sealed, admins have to file several pages for each transaction in the storage cabinets, designed in a way that auditors could access demanded files for up to a few years. The requirement of physical space solely posed a signific
ant challenge. However, with growth in digitalization and technologies, transaction records can be stored digitally, thereby reducing the need for a physical space.
Technology provides a single platform solution to address all compliance issues. The current transaction platform offers a modernized compliance process for realtors and administrators. Property information and client data require to be entered once at the start, which can be auto-filled, thereby reducing the requirement to re-enter data. Additionally, transaction administrators can also set-up time-saving automated processes that reduce the chances of errors. Further, all editing, signing, document creation, reading, and client communication can be carried out under one roof, which can be traced inside a precise timeline recording every activity.
While compliance issues can be challenging to manage, modern technologies offer alternative solutions to deal with the same. Recognizing the appropriate technology and deploying it as per the current real-estate regulations will be the core to address compliance issues in the future.