The Data Protection Act - Implications for the Real Estate Industry

The Data Protection Act - Implications for the Real Estate Industry

Category Expert Insight

The Data Protection Act and the Real Estate Industry

The Data Protection Act 2024 came into operation on the 14th of January this year. This has been a significant event for all businesses operating in Botswana and will change the way personal data is gathered, processed and stored. There has also been a noteworthy shift in the rights of the individual to whom the personal data belongs and provides for comprehensive protection of that data. The Act was drafted in line with international principles of data protection, namely the European Union General Data Protection Regulation and ensures that Botswana is aligned with best international standards.

With the Data Protection Act being fully operational, data protection and privacy laws have now become a reality in Botswana and individuals whose personal data is being collected, managed and stored by entities, have rights that they can enforce through the Act. These rights include, amongst other things, the safekeeping of personal information which places greater responsibility on organisations handling that data to maintain its integrity and ensure that it is secure when it is in its possession. Seeff Properties Botswana highlights the implications of this crucial change for both companies and individuals operating in the real estate industry.

Botswana's Data Protection Act significantly impacts how estate agencies handle the information they require and receive from clients. The Act explicitly states that "personal data shall be processed lawfully, fairly and in a transparent manner" (Section 19). This is not to say that information has not been handled in this manner prior to the Act; however, this processing and storing is governed and there are appropriate channels for non-compliance.

Impact for Clients

Clients can now request to know exactly what data is being collected (from basic contact details to financial information and property preferences). More importantly, the client can now enquire why the agency needs it and how it will be used. This ensures clients understand if their data is used solely for finding their ideal property or for marketing purposes.

The Act compels agencies to be upfront about this. Furthermore, clients can demand to know who the agency might share their data with for example, a conveyancing lawyer, or even a credit reference agency. They have the right to say "no" to sharing with certain third parties. However, in some instances the agency may be legally obliged to share information in accordance with overriding legal obligations.

Perhaps the most empowering aspect of the Act is that clients can request to see the information the agency holds about them. The agency is also obligated to respond to these requests within reasonable time periods and in a reasonable manner.

The client has an obligation to inform the agency if any of the information is incorrect (for example, a misspelled name or a change of address). In certain situations, they can even ask the agency to delete their data entirely, although this might be limited in cases where the agency has a legal obligation to retain the information (for example, records of a completed sale).

This translates to clients having real oversight of their data, not simply trusting that it will be handled responsibly; they are active participants in controlling this information. The Act gives them rights and makes estate agencies accountable. The Data Protection Act is not just a piece of legislation. It directly affects clients by giving them control, and peace of mind about how their information is handled, which can be a huge concern, especially during major life events like buying or selling a property.

Impact for Estate Agencies

Section 21 of the Data Protection Act 2024 outlines that the data collected "shall be adequate, relevant and limited to what is necessary in relation to the purpose for which it is being processed". This impacts both the agency and the client and the agency shall ensure that only relevant and necessary information is requested, processed and stored.

The Act now necessitates a fundamental shift in how estate agencies operate. Agencies must now implement data protection measures, including obtaining explicit consent for data collection, ensuring data security, and training staff on data protection best practices. They must also be prepared to respond to client requests regarding their data and be transparent about their data processing activities.

Though these changes may require initial investments on the part of estate agencies, they will result in a more ethical, sustainable business, enhancing reputation and client relationships. "As a business, we embrace change and enhancing our business processes to comply with these new provisions is not only lawful but keeps us up to date with International best practice" comments Kim Bekker, Seeff Botswana Licensee.  

With the Data Protection Act 2024 now in force, compliance is non-negotiable. These changes will directly impact the operations of all companies operating in Botswana.  Businesses are required to immediately assess and update their technical and organisational measures to meet the standards set out in the Act. Individuals now possess the right to request data handling information and are protected from purely automated decision-making. These measures collectively enhance data control and foster a more secure digital landscape in Botswana.

If you have any questions or queries on the matters raised above, please contact the Seeff Compliance Manager on 393 9372.

Author: Seeff Properties Botswana