The idea of laws being implemented are very old, however, it has been constantly increasing in all forms of business over the years.
Regulatory compliance for real estate is significant for the benefit of all parties, real estate brokers and the clients.
The Fair Housing Act is an example of regulatory compliance in the real estate world, which all agents and brokers must follow.
Ensuring Compliance in Real Estate
Knowing that regulatory compliance falls under following the law, it is a top priority for all real estate agents, brokers and investors to constantly ensure they are following through with them.
Thus, it is important to know how to make sure there is no disregard taken towards them – let’s see how!
Compliance Audit
With there being changes in regulations often, it can be possible for you to have weaknesses within your policies in real estate. This is why an audit is necessary in order to ensure you are complying with the regulations – and to have a preliminary understanding of your business.
Conduct an audit – go through your risk management procedures and policies regarding securities in order to understand where there could be any issues coming through.
Compliance Officer
Everyone has their roles at a company or firm, and one person can not look through 5 different aspects regarding every issue – which is why hiring a CCO (corporate compliance officer) can help you.
Following Procedures
Conducting an audit and having a CCO will be wasted if your real estate agents or you do not end up following the procedures that allow you to ensure regulatory compliance in real estate.
With the help in place however, you can ensure that procedures are followed and the policies are maintained. Your CCO can also help you create policies that help to follow the regulatory compliances.
Real estate sales processes have certain things that they are meant to follow including storage procedures, review standards alongside others. These need to be kept in your policies to ensure all employees and new ones coming in know how to deal with it.
Code of Ethics
The code of ethics in real estate is very important when it comes to dealing with money, and people’s trust. The code of ethics provided by the National Association of Realtors (NAR) has 17 articles and it ensures that the clients in real estate deals are protected.
This is why it is essential to follow through with due diligence and making sure all your affairs are in order when conducting any deal in real estate.
Continuing Policies
The policies alluded to already are not a one-and done deal, rather something that needs to be kept improving. Audits and reviews are a mandatory part of ensuring you are complying with regulatory laws.
This is why having people like the CCO in charge of the policies and keeping everything in check, is necessary – to ensure there is no chance of a mishap in your workplace.
Conclusion
Overall, the idea of laws have been around long enough for us to understand their importance. Your real estate business depends on you complying with these rules in order to ensure you do not get allegations of false deals.
