National Cyber Security Month

National Cybersecurity Awareness Month

Cybercrime can be devastating to real estate professionals and their clients. The following checklist offers some best practices to help you curb the risk of cybercrime. Because data protection and cybersecurity laws differ across the country, NAR recommends that you work with an attorney licensed in your state to help you develop cybersecurity-related programs, policies, and materials. A. Email and Password Hygiene • Never click on unknown attachments or links, as doing so can download malware onto your device. • Use encrypted email, a transaction management platform, or a document-sharing program to share sensitive information. • Carefully guard login and access credentials to email and other services used in the transaction • Regularly purge your email account, and archive important emails in a secure location. • Use long, complicated passwords such as phrases or a combination of letters, numbers, symbols. • Do not use the same password for multiple accounts. • Consider using a password manager. • Use two-factor authentication whenever it is available. • Avoid doing business over public, unsecured

Wi-Fi. B. Other IT-based Security Measures Keep antivirus software and firewalls active and up-todate. Keep your operating system and programs patched and up-to-date. Regularly back up critical data, applications, and systems, and keep backed up data separate from online systems. Don’t download apps without verifying that they are legitimate and won’t install malware or breach privacy. Don’t click on links in texts from unknown senders. Prior to engaging any outside IT provider, review the applicable privacy policies and contracts with your attorney. C. Law, Policy, and Insurance Considerations In collaboration with your attorney, develop a written disclosure warning clients of the possibility of transaction-related cybercrime. NAR has created a Wire Fraud Email Notice Template that you and your counsel may use and adapt. Stay up-to-date on your state’s laws regarding personally identifiable information, the development and maintenance of cyber and data-related business policies, and other required security-related business practices. Develop and implement the following policies: 1. Document Retention and Destruction Policy 2. Cyber and Data Security Policy 3. Breach Response and Breach Notification Policy

Ensure that your staff and licensees have reviewed and are following all implemented policies. Review your current insurance coverage, and ask your insurance agent about cyber insurance and the availability and applicability of products such as social engineering fraud endorsements and computer & electronic crime riders. Visit the CyberPolicy partner page for details about cyber liability insurance available through the REALTOR® Benefits Program. For more information about cybercrime and cybersecurity, please visit NAR’s Data Privacy and Security page. Questions can be directed to NAR Legal Affairs at 312-329-8270

Setting Expectations Mitigates Buyer/Seller Discord Continued from page 11 objections. Para. 22(H)(i)(b).

D. IF BUYER TIMELY TERMINATES, SELLER

MUST RETURN ALL OF THE BUYER’S EAR-

NEST MONEY.

TOP 5 PA ISSUES THAT CAUSE BUYERS ANGST:

1. PARA. 4 - TIME OFF MARKET FEE (TOM): Explain the TOM Fee to the buyer and upon termination because a contingency was not satisfied (inspection, financing, appraisal, etc.), you will never again have to hear “Why isn’t the seller just signing the Earnest Money Distribution Form – the contract is clear that I’m entitled to a refund of my Earnest Money?.” I’m sorry buyer, but no matter how clear the contract, we cannot force sellers to behave reasonably or in accordance with the contract. If you can delay depositing Earnest Money until you get through one or more contingencies, you will not be at the seller’s mercy to sign that Earnest Money Distribution Form if you terminate due to an unsatisfied contingency. By offering a TOM Fee, the seller may be willing to postpone receipt of Earnest Money. 2. PARA. 6 - PERSONAL PROPERTY: Just because it’s listed in the MLS does NOT mean it “goes with” the home. If it’s not listed in the Personal Property Paragraph (6)(D)(ii), it does NOT remain. Again, the contract is clear on this point. 3. PARA. 7 - FINANCING: If the buyer can’t get financing by the Closing Date, the financing contingency has not been satisfied. Generally, this would result in a full refund of the Earnest Money to the buyer, but the NMAR PA has a “catch” – if the buyer doesn’t provide a written rejection letter from the lender within many days before closing, the buyer does NOT get their Earnest Money back. The buyer is not in breach and will not be liable to the seller for any additional damages, but the buyer will forfeit the Earnest Money (Para. 7(B)(v) – please note how days are calculated here). 4. PARA. 9 - APPRAISAL: We added language to the PA to address this, because it came up so often. There is NO contingency within the Appraisal Contingency for square footage discrepancies. If square footage is of import to the buyer, they must determine square footage during Inspection Period. 5. PARA. 22 - INSPECTIONS: The buyer has agreed not to send the report to the seller if the buyer is terminating and to ONLY send the copy of the section(s) of the report relevant to the buyer’s objections if the buyer is objecting, BUT if the seller requests a copy of the report in writing, the buyer is obligated to give the report to the seller. The seller is NOT obligated to compensate the buyer for the report and there are no restrictions on how the seller can use the report once they have it. I’m not promising this will eliminate all buyer or seller complaints over “how the PA works” or how Earnest Money should be distributed, but an understating of what to expect regarding these provisions of the PA will go a long way to tempering your respective buyer or seller’s reaction if/when the issue arises, and even if it doesn’t, at the least, you can remind the buyer or seller that you specifically discussed the issue with them.

Legal Update provides a limited and general discussion of some, but not all, aspects of issues that is intended but not guaranteed to be accurate as of the date published. This information may become outdated and it is the responsibility of the user to determine if it is current. No summary of the law is a substitute for legal advice with respect to a particular matter. No attorney-client relationship is intended or implied. If legal advice is required, the services of a competent attorney should be obtained. NMAR members are cautioned against engaging in the unauthorized practice of law by advising a consumer of legal rights and obligations or by applying the law to particular facts and circumstances. © 2021 New Mexico Association of REALTORS®

MOST NMREC approved ethics CE classes, required for license renewal, meet the NAR requirement. The NAR 2.5 hour class does NOT meet the 4 hour requirement for license renewal. Check with your Board or contact Barbara@nmrealtor.com if you have questions.