Privacy Issues in Real Estate

p>Canada has two federal privacy laws, thepersonally accountable for the firm's compliance
Privacy Act and the Personal Informationwith privacy regulation. This individual needs not be
Protection and Electronic Documents Acta real estate licensee. A non-practising,
(PIPEDA). The Privacy Act imposes obligations onnon-licensed owner or shareholder, for instance,
some 150 federal government departments andcan serve as a Privacy Compliance Person. This
agencies to respect privacy rights by limiting theindividual must be proficient with all facets of the
collection, use and disclosure of personalAct and is in charge of educating staff and
information. Individuals are also protected by themanage inquiries and complaints.
PIPEDA that sets out ground rules for how[ ] Identification of Purposes - Whether in the
private sector organizations may collect, use orprocess of introducing a Listing Contract or
disclose personal information in the course ofdrafting an Offer To Purchase, the real estate
commercial activities.professional has an obligation to clearly identify
Initially, PIPEDA applied only to personaland explain to each individual why and how there
information about customers or employees thatis a need to collect and use that individual's
was collected, used or disclosed in the course ofpersonal information. Furthermore, the real estate
commercial activities by the federally regulatedprofessional has an obligation to explain why, how
private sector, organizations such as banks,and to whom he may wish to disclose such
airlines, and telecommunications companies. Theinformation.
Act now applies to personal information collected,[ ] Limitation of Collection, Use and Disclosure -
used or disclosed by the retail sector, publishingThe real estate professional must not collect, use
companies, the service industry, manufacturersand disclose more information than what is
and other provincially regulated organizations. Realreasonably necessary under the circumstances.
estate is, of course, one sector of the serviceMoreover, there is an obligation imposed on the
industry.Realtor not to collect, use and disclose personal
Of all the Provinces in Canada, British Columbia isinformation for any purpose unless the individual
possibly the strictest when it comes to enforcinghas consented to that purpose.
consumers' privacy rights. The Personal[ ] Destroy Information - Personal information
Information Protection Act of British Columbiamust be destroyed once it is no longer needed
came into force and effect on January 1, 2004for the purpose for which it was collected. One
and applies to all consumers and service industriesnotable exception is Contracts of Purchase and
in the Province, including real estate, banking andSale, which must be stored for two years but
mortgaging. Specifically as it relates to real estate,only for review purposes by pertinent real estate
the Act protects all personal information that islicensing authorities.
collected, used or disclosed, including information[ ] Provide Access - Individuals are guaranteed
regarding a person's race, age, marital status,access to their own personal information for
religion, employment history, home address andpurposes of review and amendment thereof.
telephone number(s) including cellular telephone[ ] Provide Recourse - Procedures must be
number, finances including the purchase or sale ofimplemented to receive and respond to
real property, credit history, banking qualificationscomplaints and inquiries.
and political opinions.When it comes to enforcement, the Legislation
The provincial legislation imposes significantestablishes a procedure that empowers the British
obligations on real estate brokerage firms andColumbia Information and Privacy Commissioner
individual professionals, pretty much in line with theto investigate - including auditing - an organization.
fiduciary duties and obligation contemplated inThe Commissioner has the power to issue orders
agency relationships. Below is a synopsis of thewhich are binding on firms. Failure to comply with
most important obligations:the Legislation can result in penalties up to CAD
[ ] Designation of a 'Privacy Compliance Person' -$100,000 as well as civil damages and criminal
Since companies are simply legal entities andcharges.
cannot enforce compliance with the Act, eachPrivacy is an issue taken very, very seriously in
brokerage firm must designate an individual who isBritish Columbia.