On September 18, 2023, NAR published a Frequently Asked Questions (FAQs) sheet about recent updates to the Federal Trade Commission’s (FTC) Safeguards Rule, which took effect on June 9, 2023.
In an earlier Washington Report, NAR provided more general information about the Rule, which has been in effect since 2003. Recently, some members have asked more specific questions about the 2021 amendments to the Rule, including one expanding the definition of “financial institution” to include “finders” who bring together buyers and sellers of a financial service or product. NAR’s FAQ sheet answers the questions, including ‘Is a real estate brokerage now subject to the Rule?
Most real estate brokerages are unlikely to be subject to the Rule so long as they remain engaged in traditional real estate activities. Please review the FAQs and consult an attorney if your brokerage is considering offering financial services or products, or you have specific questions about compliance with FTC’s or other rules.