Cybersecurity Laws and Your Real Estate Business: Staying Compliant

17 December 2025

Introduction

Picture this: You’re closing a huge real estate deal, everything’s going smoothly, and then—bam! Your system gets hacked, client data is compromised, and suddenly, you’re facing legal trouble.

Scary, right?

In today’s digital world, cybersecurity isn’t just an IT issue—it’s a legal one too. If you’re in real estate, you handle sensitive data daily: bank details, social security numbers, home addresses. Cybercriminals salivate over that kind of information.

And guess what? Governments know it too. That’s why cybersecurity laws are tightening, and compliance isn’t optional anymore—it’s mandatory.

So, let’s dive in and talk about cybersecurity laws that could impact your real estate business. We’ll also break down how to stay compliant without losing your sanity.

Why Cybersecurity Matters in Real Estate

Imagine leaving your office door wide open overnight—no locks, no alarms. Would you sleep peacefully?

Of course not!

Yet, many real estate professionals unknowingly do the digital equivalent of this by neglecting cybersecurity. A single breach can bring financial loss, lawsuits, and even reputational damage you may never recover from.

Here’s why cybersecurity should be at the top of your priority list:

- You Handle Sensitive Client Data – Buyers and sellers trust you with highly personal details. A breach could not only harm them but also ruin your credibility.
- Cybercriminals Target Real Estate Businesses – Wire fraud, phishing attacks, and ransomware are becoming increasingly common in the industry.
- Regulatory Compliance Is Mandatory – Ignoring cybersecurity laws isn’t just risky—it’s illegal.

Now, let’s talk about those laws you need to be aware of.

Key Cybersecurity Laws Affecting Real Estate Businesses

Cybersecurity laws exist to protect businesses and consumers alike. Depending on where you operate, different laws may apply to you. But here are some of the most critical ones real estate professionals must pay attention to.

1. The Federal Trade Commission (FTC) Safeguards Rule

The FTC Safeguards Rule requires financial institutions (which can include real estate businesses) to implement security measures to protect client data. If your real estate firm offers financial services like mortgages, this law applies to you.

What does compliance look like?

- Designate a qualified individual to oversee cybersecurity
- Implement data encryption and multi-factor authentication
- Regularly update cybersecurity protocols
- Conduct ongoing risk assessments

Failing to follow these guidelines could result in hefty fines and severe legal consequences.

2. The Gramm-Leach-Bliley Act (GLBA)

The Gramm-Leach-Bliley Act focuses on protecting consumers’ financial information. If your business collects client banking or mortgage data, GLBA compliance is a must.

Here’s what you need to do:

- Inform clients about how their data is collected and used
- Establish safeguards to protect sensitive information
- Restrict unauthorized access to financial records

Neglecting GLBA compliance can result in penalties of up to $100,000 per violation—ouch!

3. General Data Protection Regulation (GDPR)

If you work with international clients, especially from Europe, the GDPR is a law you can’t ignore. This regulation protects personal data and provides strict rules on data collection, storage, and security.

To stay compliant with GDPR:

- Obtain explicit consent before collecting personal data
- Allow clients to request the deletion of their data
- Secure all client information with strong encryption

Fines for non-compliance? Up to €20 million or 4% of annual global revenue (whichever is higher). That’s enough to cripple any small real estate business.

4. The California Consumer Privacy Act (CCPA)

If you operate in California, the CCPA affects how you handle customer data. Similar to GDPR, this law gives consumers control over their personal information.

Under CCPA, you must:

- Tell customers what data you collect and why
- Allow them to opt-out of data sales
- Delete personal information upon customer request

Penalties for CCPA violations range from $2,500 to $7,500 per violation, and class-action lawsuits could cost even more.

5. The Cybersecurity Information Sharing Act (CISA)

CISA encourages businesses to share cybersecurity threat information with the government to enhance national security. While this law isn’t directly enforceable on real estate businesses, participating in its guidelines can help protect your firm from cybercrimes.

By reporting cyber threats, you contribute to a larger network of cybersecurity intelligence—benefiting not only your business but the entire industry.

How to Keep Your Real Estate Business Cybersecure & Compliant

Now that we’ve covered the laws, let’s talk about how to stay compliant (without hiring an entire cybersecurity team).

1. Train Your Team on Cybersecurity Best Practices

Your employees are your first line of defense. Educate them about:

- Recognizing phishing emails
- Using strong passwords & enabling two-factor authentication
- Safely handling sensitive client data

A single uninformed employee clicking on the wrong link could cost you millions. Training is non-negotiable.

2. Invest in Secure Cloud Storage

Storing sensitive client data on an old-school hard drive? That’s a disaster waiting to happen.

Upgrade to a secure cloud storage provider that offers encryption, data backups, and strong authentication features. Some reliable options include:

- Google Workspace
- Microsoft OneDrive
- Dropbox Business

3. Use Encrypted Communication Tools

If you’re discussing transactions or sharing sensitive data via email, STOP. Unencrypted emails are easy targets for hackers.

Instead, use encrypted messaging and email services, like:

- ProtonMail
- Signal
- WhatsApp Business (end-to-end encryption enabled)

4. Regularly Update Your Software & Security Patches

Outdated systems are gold mines for cybercriminals. They exploit weaknesses in old software to gain access to your business.

Make sure to:

- Update all software, antivirus programs, and firewalls regularly
- Automate security patches (so you never forget)
- Replace outdated systems before they become a liability

5. Limit Employee Access to Sensitive Data

Does every employee need access to your clients’ bank details? Probably not.

Follow the principle of least privilege (PoLP)—only grant access to employees who absolutely need it. This minimizes risk if a breach does occur.

6. Have a Cybersecurity Incident Response Plan

No system is bulletproof. If a breach happens, what’s your game plan?

Prepare a Cybersecurity Incident Response Plan, including:

- Steps to contain & assess the damage
- Who to notify (clients, authorities, legal teams)
- Measures to prevent future breaches

A well-structured plan can save your business from chaos and lawsuits.

Conclusion

Cybersecurity laws aren’t just legal jargon—they’re guardrails protecting your real estate business from financial disaster.

Ignoring compliance could mean massive fines, lost clients, and irreversible damage to your reputation. But by training your team, encrypting data, updating your systems, and having an incident response plan, you can stay ahead of cyber threats and the law.

Real estate is all about trust. And in today’s digital world, cybersecurity is the foundation of that trust. Don't let a data breach be the reason your business crumbles—take action now, stay compliant, and keep your clients safe.