Real estate agents operate in a highly regulated industry, where adhering to local, state, and federal laws is essential. Real estate compliance ensures agents avoid legal pitfalls and maintain professional integrity. In this blog post, we will explore best practices for agents to stay compliant in every transaction.
Real estate regulations vary across different regions. As an agent, staying informed about changes in real estate compliance at both local and state levels is crucial. Regulatory updates can impact contracts, disclosure requirements, and more. Agents should:
Pro Tip: Don’t view continuing education as a checkbox. Use it to stay sharp and up-to-date on real estate compliance changes.
One of the best ways to ensure real estate compliance is by using a transaction management system designed for real estate. It's best to make sure the software you're using is in compliance with local, state, and federal regulations. A compliant deal management system:
Platforms like Jointly go beyond basic compliance by using workflow intelligence, ensuring all documents are filled out correctly and meet regulatory standards. This simplifies compliance and reduces risk.
⚡️ Let your tech work for you—read more about Jointly's proactive compliance and reactive compliance features.
In the world of real estate compliance, thorough documentation is your safety net. Agents should document:
Manually tracking every detail can be overwhelming. This is where tools like Jointly make a difference by automating the documentation process, ensuring everything is logged and accessible.
Adhering to fair housing laws is a critical aspect of real estate compliance. Agents must avoid discriminatory practices based on race, color, national origin, religion, sex, familial status, or disability. While this may seem obvious, violations still occur—sometimes unintentionally.
To stay compliant:
Ignorance of fair housing laws is not a valid defense, and violating these laws can result in significant penalties.
Proper use of disclosures is fundamental to real estate compliance. Disclosures provide important information to buyers, ensuring transparency in transactions. Key disclosures include:
Using a system like Jointly ensures agents have access to approved versions of all required disclosure forms. This not only simplifies the process but also guarantees that all documents are up-to-date and compliant with current regulations.
Larger real estate teams often implement internal compliance processes, but it’s wise to work with a compliance expert who can help:
For smaller teams or individual agents, a compliance expert can provide invaluable guidance and peace of mind.
Staying compliant in the real estate industry is non-negotiable. By following these best practices—staying informed on regulations, using a compliant deal management system like Jointly, documenting everything, adhering to fair housing laws, using proper disclosures, and seeking expert guidance—you can ensure your real estate compliance efforts are thorough and effective. Embracing these strategies not only protects your business but also builds trust with clients and enhances your professional reputation.
Ready to ensure full compliance in every transaction? Learn how Jointly’s real estate software can simplify compliance for your business.
