Compliance • Legal
Real Estate Data Privacy Laws: What Brokers Need to Know in 2026
Enforcement is ramping up. Here's how to protect your brokerage and your clients.
There's no federal data privacy law for real estate — yet. But that doesn't mean you're off the hook. State laws are multiplying, enforcement is increasing, and the patchwork of regulations is getting harder to navigate.
Here's what brokers need to know.
The State-by-State Reality
California's CPRA. Virginia's VCDPA. Colorado's CPA. More states are passing comprehensive data privacy laws every year. These laws typically give consumers the right to:
- Know what information you collect
- Request deletion of their data
- Know if you're selling their information
- Opt out of data sales
For real estate professionals, this means your data handling practices are under scrutiny.
Fines Are Real
Warning: Under California's CPRA, violations can result in fines up to $7,500 per incident. But the bigger risk is civil liability — clients can sue for damages resulting from data breaches or privacy violations. In one case, a real estate professional's failure to protect transaction data led to a judgment of over $167,000.
Data Breach Notification
Almost every state now has data breach notification laws. If client personal information is compromised, you're required to notify affected individuals — sometimes within 72 hours.
The reputational damage from sending that notification often exceeds the legal penalties.
Practical Steps for Compliance
Minimize collection: Only gather information you actually need.
Minimize retention: Delete client data when the transaction is complete and retention periods have passed.
Minimize exposure: Before sharing documents with third parties, redact information they don't need.
Document your practices: Have a written privacy policy and data security plan.
Train your team: Everyone who touches client data needs to understand their obligations.
The Simplest Protection
You can't breach data you don't have. Before sharing any client document externally, remove the sensitive information that isn't required for that specific purpose.
It's faster than reading a compliance manual — and far cheaper than a lawsuit.
Protect client data in seconds
Redact SSNs, account numbers, and addresses before sharing any document.
Protect Client Data Now →