REIX: Real Estate Insurance Exchange - Alberta, Saskatchewan

We’re a non-profit organization which means that premiums are used to pay the costs of defending claims and surplus funds are used to keep premiums low.

Trading in Real Estate Outside of Your Area

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Trading in Real Estate Outside of Your Area

Information is power, and technology is giving licensees access to incredible amounts of information which helps them better meet their clients’ needs. Pillar9™ allows licensees to trade outside of their area and bring properties to clients from any jurisdiction in the province. But the question is, should you?

REIX recommends that you should NOT.

Your client is relying on your expertise and knowledge to help sell or purchase a property and the law imposes that duty on you.

Clients expect that you as their representative have awareness of any unique features of both the property and the area in which it is located. If you are hundreds of kilometers away and haven’t seen the property for yourself, these features can go unnoticed. Given that, being part of that listing’s transaction could risk your reputation and invite potential liability.

You have a fiduciary duty to your client and taking a listing or writing an offer on a property you’ve never seen or a residence you have not stepped foot in leaves you open to a claim and or litigation.

If a claim or lawsuit arises from a transaction where you have either listed or sold outside your area, a Court will most likely find that you failed in your fiduciary duties to your client and may assess liability and damages against you. Both you and your broker may be financially liable and responsible for payment of that Judgement.

Trading outside your area is risky, so what should you do if you find yourself in this position? Your best course of action is to refer the buyer or seller to a qualified agent in the area. To do otherwise just isn’t worth the risk.

If you have any questions, concerns or have been served with a lawsuit/demand letter contact REIX immediately at admin@reix.ca.

 

Multi-Factor Authentication on your business email account

If you already need a separate passcode (e.g. a code texted to your cell phone) to access your email  for the first time on a new device, or to view it on the web, then you already have this.

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Weekly backups for your business computer systems

Your computer systems, such as your PC and your phone, contain mission-critical data on them – regular backups are a simple and effective way to ensure disruptions to you and your clients are minimized in the event disaster strikes.

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Firewalls on your internet access

Almost all internet connections have a firewall built in to prevent people from freely accessing your home or business network, or worse, your computer’s files.  You most likely already have this in place, but we encourage you to familiarize yourself with the key piece of security equipment.

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Endpoint Protection (a.k.a. anti-virus)

An up-to-date endpoint protection software is key to keeping your PC safe from viruses – it’s simple to install and may already have it included free with your computer (e.g. Windows Defender). It scans files, emails, and more to make sure nasty viruses and code to infect your PC.

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Security and Privacy Liability

Provides coverage, including legal expenses and damages, for any claim made against you for any actual or alleged breach of privacy, damage to the computers or systems others, unauthorized disclosure of data, and more, arising out of your professional services.

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Data Recovery and Loss of Business Income

a) Pays for the expenses related to investigate, repair, and manage a cyber event, including but not limited to: damage and interruption by a computer virus or malicious code, accidental damage or destruction of data, and malfunctions.

b) Reimburses you for lost income as a result of a cyber event – subject to an 8 hour waiting period.

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Event Management Expenses

Covers the costs associated with a breach of your systems to ensure you meet the requisite privacy legislation requirements – including notification costs as well as credit monitoring and other support for affected clients.

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Data Extortion

Provides services and coverage for expenses related to cyber extorsion threats (e.g. ransomware) – including the costs to manage the event and, where necessary, pay the ransom.

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Social Engineering Fraud

This is coverage for your clients – it covers them for lost deductibles as a result of somebody using your identity and business relationship as part of a real estate deal to convince them to send their deposit to the wrong place.

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Security and Privacy Liability

Covers legal expenses and damages for any claim made against you for breach of privacy, damage to the computers or systems of others, unauthorized disclosure of data, and more, arising out of your professional services.

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Data Recovery and Loss of Business Income

Pays for expenses related to investigating, repairing, and managing a cyber event, and reimburses you for the income lost due to the event.

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Incident (Event) Management Expenses

Covers costs associated with ensuring you meet the requisite privacy legislation requirements post-incident — including notification costs, credit monitoring, and other support for affected clients.

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Data Extortion

Provides services and coverage for expenses related to cyber extortion threats (e.g. ransomware) — including costs to manage the event and if necessary, pay the ransom.

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Social Engineering Fraud

Covers the actions of third parties who fraudulently cause the diversion of deposit funds from a real estate trade.

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Multi-Factor Authentication (MFA):

Multi-step account login process that requires users to enter more information than just a password, like a code sent to their email or phone.

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Weekly Backup:

Copies your files to a safe secondary location for preservation in case of equipment failure or cyber incident.

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