How does data protection work in the real estate industry?

When selling or buying an apartment, house, or land, you want to protect yourself as much as possible from the disruption of the operation and involve a professional, experienced specialist for this. But unfortunately, even then, failures happen. So, what is the best way to protect yourself in the real estate industry?

How to avoid fraud in the real estate market?

Real estate has always been a valuable asset for companies and individuals. Investing in real estate is a reliable and promising investment, one of the proven options for investing free funds. Unfortunately, it is in connection with the popularity of this asset that one can often encounter cases of fraud and misconduct in the real estate industry.

The real estate market is becoming less secure, evidenced by the latest research data. In this regard, fraudulent schemes, with the help of which citizens massively lose their homes and money, are of great interest. Most real estate crimes are committed in written transactions. Moreover, it is often impossible for many schemes to prove criminal intent, and affected citizens must try to defend their rights in court in civil law disputes. The vast majority of vicious transactions that are subsequently challenged in the courts are also concluded without the participation of a notary.

Virtual data room: stay secured during business transactions

The introduction of virtual data rooms is a breakthrough in real-estate data management. These digital platforms, an example of using cloud technology in modern times, are the most important invention of this century. They are the most widespread trend in organization secure business collaboration.

These are the main advantages of data rooms for real-estate companies:

  • Centralized data storage

Many departments of a company can have their databases. For example, the marketing or human resources departments can each have their database. The data are in scattered forms. Cloud-based data rooms can be accessed centrally from any location. This way, companies can store all their data in one place, accessed by all employees from all departments.

  • Data security

Data security is the biggest advantage that a virtual room offers to your company. The best feature of data room software is protecting data from external and internal threats. An external threat is an unauthorized intrusion, e.g. a hacker breaking into the data room. An internal threat is that your employees could misuse your company data. These are the most impressive security features and benefits of the data room:

    1. Multi-factor authentication protects against unauthorized access.
    2. Data encryption allows data room users to share or store encrypted versions of their data. 
    3. Digital watermarks are very useful for copyright protection. 
    4. Audit logs provide detailed reports of every conversation, document edit, Q&A session, logins and logouts, and any other activity.
    5. Remote wipe protects data in case a logged-in device is stolen or lost.
    6. Data sharing and control

Virtual data rooms can be used for sharing and storing data securely. You have full control over your business documents with secure data room software. You can also control who and what accesses your business information in the data room. For example, the administration can set access permissions according to the roles and needs of the users in the data room. In addition, administrators can restrict access to specific folders and documents. Administrators can also limit access to records for a particular time.