If you have been following my articles for a while or listening to my ‘Live’ Compliance over Coffee events in my Facebook Group: Property Sourcing Compliance Support you will have an idea as to what regulations are relevant to us as property sourcers.
As an experienced Property Sourcing Coach, relevant Legislation and Regulations form an important part of what I teach my coaching clients and one of the main pieces of law that we focus on are the General Data Protection Regulations (GDPR).
Collecting, holding and disposing of data
As Property Sourcers we hold a lot of data, a significant amount of that data is ‘personal’ relating to sellers, investors and other professional contacts. As a result of this it is a legal requirement for us to be registered for Data Protection supervision and that we are aware and follow the 6 Principles:
- Lawfulness, fairness and transparency
- Purpose Limitation
- Data minimisation
- Storage limitation
- Integrity and confidentiality
These ‘Principles’ cover what data we collect, why we are collecting it, how we hold it, how we provide access to the data owner, how accurate it is, how long we hold it, how secure it is held and how and when we dispose of the data.
How might GDPR affect how we can source deals?
When you are sourcing deals directly from the seller obviously you have to make contact and so this is when GDPR may have an affect on how you work.
The good news for you is that ‘leaflets’ pushed through doors are considered to be ‘junk mail’ and not in themselves covered under GDPR
Writing directly to a named person is however covered under the regulations and as your potential contact has not ‘opted in’ to your marketing you have to use the alternative approach known as ‘Legitimate Interest’.
What does that mean?
It means that if you intend to say, obtain an owners details from the Land Registry and then write to them that you would have to be able to show that the person that you are writing to had a ‘Legitimate Interest’ in the service that you were offering.
For example, the property that you or your investor may be interested in is empty and in poor repair, or is currently for sale through another agent or even up for sale and to let at the same. It is quite possible that the owner of any of these properties may well be interested in our service.
The most important thing to remember is that even if you believe that the person that you have written to may have ‘Legitimate Interest’ in your service if at any time they state that they don’t want to communicate with you, you must stop or you would be in breach of GDPR.
Failure to Register for Supervision: Up to £5,000 each time caught
Breaches of regulations: 4% Turnover capped at £20m
If you are unsure or have any questions please get in touch and why not join my Facebook group Property Sourcing Compliance Support. I also have a book available to help guide you through all the regulations Property Sourcing Compliance.
Links to articles to read for more info to bulk out the article: