Here's my prediction. Currently some jurisdictions in North America and around the world have concerns regarding real estate documents being only stored as only digital files. Some areas even allow digital files to be stored, only if there is a paper copy too! Though we are clearly moving in the direction away from this absurd requirement, my prediction is that in a 5-10 years, paper real estate documents will be REQUIRED to be shredded before storage and only secure digital storage will be permitted.
This is so backwards from where most policy makers comfort level is at currently, it is hard to envision this. However, the current policy makers will be replaced with industry members who have grown up in a digital world. This is what the future leaders in our industry are going to see:
Paper real estate files required to be retained fro 5-10 years depending on the jurisdiction they operate in. These paper documents at risk from:
- fire
- flood
- other natural disaster (hurricane, tornado, earthquake)
- sprinkler damage
- misplacement
- misfiling
- being removed and not returned
- being difficult to access off-site
- BEING STOLEN!
Each one of these items are legitimate and feasible concerns that in the past we simply accepted. There wasn't a choice and we dealt with the consequences of such events, which usually involved losing required documents or files.
In today's business world, we have the tools and technology to avoid every one of the risks laid out. Online document storage systems allow for confidential files to be stored in digital format. Many online document storage providers have professional dedicated servers for exactly our type of confidential documents. They often have the following security items in place to address each concern above:
- server located in fire secure room
- mirrored server holding 2nd copy of data in separate city, in event one server suffers from natural disaster
- redundant power supply in event of temporary power loss
- searchable data base, so misfiled items can be found with ease
- items can be copied and printed, while original remains in system. Misplacement or removal is a non-issue
- documents can be accessed from anywhere with an Internet connection. Always accessible
- documents are stored encrypted. Password access is required to access the documents. Users can only access the documents they have been assigned permission to. Only limited and required employees have access to the server and these employees sign non-disclosure statements.
Comparing the two lists above, it is clear that the future of real estate document storage will not only be allowed to be stored digitally but that paper file storage will be illegal!
For a list of security questions to ask of potential online document service providers, leave me a video reply here on the video widget (top left corner of the blog) or email me at jstoner@telusplanet.net
