The General Data Protection Law (LGPD) has brought significant changes to various sectors in Brazil, including real estate. This article provides a comprehensive guide on how the LGPD is impacting operations in the real estate sector, addressing the challenges and best practices to ensure compliance. It explores how real estate agencies, developers, construction companies, and independent professionals should handle clients' and partners' personal data—from collection to storage and sharing—as well as the legal implications and penalties for non-compliance.
The General Data Protection Law (Law N. 13.709/2018), known as the LGPD, came into force in Brazil in September 2020, establishing a new regulatory framework for personal data protection. Its impact on the real estate sector is profound, as companies in this field handle a large amount of sensitive personal data, including financial and personal information of buyers, tenants, and investors. LGPD compliance is, therefore, essential to avoid sanctions and maintain customer trust.
LGPD Fundamentals in the Real Estate Sector
LGPD Principles
The LGPD is based on fundamental principles such as transparency, security, purpose, and necessity in the collection and processing of personal data. In the real estate sector, these principles must be strictly followed—from obtaining personal information for credit analysis to storing contracts and digital documents. The law requires that personal data be treated transparently and securely, with a specific and legitimate purpose.
Personal Data and Sensitive Data
In the real estate context, personal data includes information such as name, taxpayer ID (CPF), address, phone number, and bank details. Sensitive data, which requires greater protection, includes information about health, sexual orientation, religious beliefs, and racial origin. Handling this data requires special care, as the LGPD imposes additional restrictions on the collection and processing of sensitive data, allowing it only in specific situations with the explicit consent of the data subject.
Impact of the LGPD on Real Estate Operations
Data Collection and Consent
One of the main challenges of the LGPD for the real estate sector is obtaining and managing consent from data subjects. All personal data collection must be preceded by clear communication regarding the purpose of the information’s use, and consent must be obtained explicitly and documented. For the real estate sector, this means that registration forms, sales contracts, and lease agreements must be revised to include specific consent clauses for data processing.
Sharing Data with Third Parties
The real estate sector often shares personal data with third parties, such as banks, insurance companies, and law firms, during financing, insurance, and legal advisory processes. The LGPD requires that data sharing be based on legitimate purposes and that the data subject is informed about who their data is shared with and for what purpose. Real estate companies must review their contracts with partners to ensure they are also compliant with the LGPD.
Data Storage and Security
Another critical aspect of the LGPD is data security in storage. Real estate agencies and construction companies must implement appropriate security measures to protect personal data from unauthorized access, loss, or breaches. This includes the use of encryption, access control, and secure backup procedures. Additionally, companies must ensure that only authorized personnel have access to stored personal data and that it is kept only for the necessary period.
Legal Consequences of Non-Compliance with the LGPD
Penalties and Sanctions
Non-compliance with the LGPD can result in significant penalties, including fines of up to 2% of the company’s annual revenue, capped at R$ 50 million per violation. In addition to fines, the National Data Protection Authority (ANPD) may impose other sanctions, such as suspending the operation of a database or prohibiting data processing until the situation is resolved. For the real estate sector, such sanctions can seriously compromise operations and damage a company's reputation.
Civil Liability
In addition to administrative penalties, real estate companies may be held civilly liable for damages caused to data subjects as a result of LGPD violations. This includes liability for data breaches, misuse of personal information, or security failures. Civil liability can lead to substantial compensation payments, reinforcing the importance of a robust LGPD compliance program.
Best Practices for LGPD Compliance
Implementing Privacy Policies
One of the first steps toward LGPD compliance is implementing a clear and accessible privacy policy that details how personal data is collected, used, stored, and shared. This policy must be communicated transparently to customers and be available on all company communication channels, including websites and mobile apps.
Employee Training and Awareness
It is essential that all real estate sector employees, from sales agents to directors, are trained in LGPD compliance. They must be aware of the law’s principles, internal procedures for handling personal data, and the consequences of non-compliance. Regular training programs and awareness campaigns help ensure that all employees understand the importance of data protection and act in compliance with the legislation.
Audits and Periodic Reviews
Regular audits of data processing procedures are essential to identify and correct any compliance failures. Real estate companies should periodically review their data collection, storage, and sharing practices, as well as review contracts with suppliers and partners. Audits help ensure that the company’s practices align with LGPD requirements and that any non-compliance is addressed promptly.
Conclusion
The LGPD has brought profound changes to the real estate sector, requiring companies and professionals to quickly adapt to new data protection requirements. LGPD compliance is not only a legal obligation but also an opportunity for real estate companies to strengthen customer trust and stand out in the market. Implementing best practices, raising employee awareness, and conducting periodic audits are essential steps to ensure that real estate operations are conducted safely, transparently, and in compliance with the law.
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