The following is an excerpt from the Summer, 2012 edition of “For the Record” published by RECO.
Real estate professionals are quick to embrace new technologies that help them work more efficiently, and cloud storage is an emerging trend. On the surface, it seems like a great idea. By uploading documents over the internet, records are kept safe on a third-party’s backed-up, professionally maintained servers. As a result, documents won’t be lost in case of fire or theft at a brokerage office, and they can be conveniently accessed from many places.
Registrants have obligations to protect their clients’ information under Federal privacy laws and the Real Estate and Business Brokers Act, 2002 (REBBA 2002). But where is the cloud? If you are relying on a third party outside of Canada, you inhibit your ability to fully control access to that information and to protect your clients’ privacy.
Notably, many cloud services are based in the United States, putting those records under the jurisdiction of American law. Because of the PATRIOT Act and other regulations, it’s estimated that over 10,000 agencies in the United States can access information stored by third parties without a warrant and without having to notify the owner of the information.
Also, REBBA 2002 regulations require registrants to keep their business records in Ontario, if they relate to trading in real estate in Ontario. If the cloud storage service is based outside Ontario, it should only be used for back-up purposes, not primary storage of documents.
For more information on record-keeping requirements, read RECO’s Registrar’s Bulletin on Electronic Document Storage, available on www.reco.on.ca and MyWeb.