DOCUMENT SHREDDING AND OTHER SAFEGUARDS REQUIRED
Reprint from ReaLegal(r) published by the CALIFORNIA ASSOCIATION OF REALTORS(r)

As far as office equipment goes, real estate offices first couldn't do without the telephone, and then it was the fax machine, the computer, and now . . . the paper shredder.  Beginning June 1, 2005, federal law will require the proper storage and disposal of consumer credit reports and related information.  This rule aims to protect consumers from "dumpster diving" by identity thieves.  The rule is part of the Fair and Accurate Credit Transactions Act of 2003 or FACTA which generally aims to prevent consumer fraud.

This new federal law merely serves as a reminder that REALTORS(r) must currently comply with even stricter California law for handling customer records.  Under existing California law, a business must generally take all reasonable steps when destroying customer records containing "personal information" by shredding, erasing, or otherwise modifying the personal information to make it unreadable or undecipherable through any means.  Whereas the new federal law only pertains to credit reports, California law broadly defines "personal information" as any information that identifies, relates to, describes, or is capable of being associated with, a particular person.  This California law, which came into effect on January 1, 2001, is set forth at California Civil Code sections 1798.80 and 1798.81.

California law also generally requires a business to implement and maintain reasonable security procedures and practices to protect from unauthorized access certain personal information of a more sensitive nature (such as social security numbers, driver's license numbers, and account numbers).  If a business discloses this type of personal information pursuant to a contract with a nonaffiliated third party, the business must require by contract that the third party also implements and maintains reasonable security procedures and practices.  This law, which came into effect on January 1, 2005, is fully set forth at California Civil Code section 1798.81.5.

COLD CASE FILE

These stories from the trenches are real. The analysis and opinions are those of the editor and are not to be construed as being legal analysis or advice. Please consult with your Broker and or attorney if you need help with your real estate transactions.

Via their respective Agents, the Seller provided the Buyer with full disclosure on the subject property as well as access to all the Buyer's inspectors for the physical, mold and geological inspections. The Buyer reviewed the inspection reports and generated a list of the corrective items corresponding to the reports.  The Seller agreed to and did repair the items as requested. The Buyer signed off on all disclosure documents within the 17 days removed all contingencies.  The escrow closes.

Three weeks later, the Buyer's Agent calls the Seller's Agent to say that mold was discovered in the flooring when the carpet was pulled up for re-modelling. The Buyer is unhappy and wants money to repair mold damaged areas and prevent further mold infestation.

POP QUIZ
Who should pay for the mold remediation? Who will actually pay?

DISCUSSION
REFERRING SERVICES

In every seminar that I ever attended, lawyers stress that Agents should have Buyers and Sellers select their own vendor services. In the real world, Buyers and Sellers expect that their Agent will recommend reliable and trustworthy title/escrow, zone disclosure, termite / home / mold / geological inspections and home warranty services that are required to complete the different parts of the transaction.

Within a few transactions, even a new Agent has been in contact with many vendor services. Based on his experience with their service and other persuasive factors, he naturally develops his favourites in each service category.

For the most part, most companies provide "good enough" service and clients don't complain.  However, even the best companies will occasionally make a mistake. The integrity of the company is put to the test in the instance when their service is "not good enough".

You should know what exactly what to expect in the event of a vendor's failure in service. How do you rate the company's customer service? How does the company back up its work? How prompt is it to investigate complaint issues? How quickly does it resolve problems? Does it voluntarily pay for its mistakes or argue on principle? These questions should be answered to your satisfaction ahead of considering a company for any of your referral business.

Your client will hold you accountable for any service that you refer to the transaction when it fails to perform properly. The very least you can do to protect yourself is to ensure that the companies to which you refer business are responsible for the work they do as well responsive when their work fails you and your client. The company should be ready to correct their errors and compensate the damaged party immediately. 

WEB SITE TIPS

Listing? Listing/Sold and New Sale
Enter complete information so co-ordinating your transaction goes faster and smoother!
These are the most often missed entries:

THE CO-OP AGENT is the CO-OPERATING AGENT, ie the Agent on the other side of your transaction. We emphatically need the Co-op Agent's name and phone number and office information so that we can make immediate contact.

YOUR CLIENT'S INFORMATION Remember that REMERGE mails disclosure documents directly to your client's home.  We can send documents by messenger service if we have the client's business address at a commercial location.
We need to know how many persons you are representing in the transaction and correct address(s) as well as a phone number for each so that we may follow up.

INSPECTION COMPANY: When you are on the Buyer's side, let us know with whom and when you are scheduling the home inspection.

TERMITE COMPANY: When you are on the Seller's side, provide the name and phone number of the company you want to use. We will schedule this appointment for you.

When you or the contract does not name vendor services, the following REMERGE affiliate services will be used.

Zone Disclosure: Property Disclosure Services, A First America Title Company
Property Tax Report: CA Tax Data
Home Warranty: American Home Shields
Termite Inspection: Terminix (Los Angeles County, Orange County, San Diego County and Inland Empire)
Home Inspection: Amerispec (Orange County only)

HERE WE GROW AGAIN!
REMERGE will be interviewing for a new coordinator through the end of June.
If you or others you know are interested in becoming a REMERGE Coordinator, please e-mail a resume to: shelly@remerge.com

QUESTIONS, COMMENTS, SUGGESTIONS?
E-mail to: Shelly Gorenstein, REMERGE Gazette Editor We're here for you!