Will a lack of paper end real estate regulation as we know it? At least one regulator suggests that the advent of the "paperless" transaction also means the disappearance of the "paper trail" regulators use to enforce real estate rules.

Bob Myroniuk, executive director of the Real Estate Council of Alberta, Canada, warns that, "as the use of technology increases, communication becomes electronic and the paperless transaction becomes more common, traditional paper trails and record-keeping methods will disappear.

"As a result, the impact on investigative processes will have to be reviewed and training will have to be provided to investigators so they too are familiar with the technology in use and can be effective investigators in this new environment."

Myroniuk's warning comes in the November/December issue of Boundaries, the official newsletter of the Association of Real Estate License Law Officials.

Although Myroniuk stops just short of calling for national or international real estate licensing -- something that would take state legislatures and real estate commissions out of the regulatory loop -- he does recommend that because transactions are moving quickly across state and even international borders, "harmonization" of rules between jurisdictions may become necessary, including:

• Harmonization of licensing categories (broker, agent, salesperson, etc.)
  
  
• Reciprocity in the areas of licensing and education requirements.
  
  
• ARELLO, NAR, the Canadian Real Estate Authority and other industry associations should promote license recognition and reciprocity (facilitate interstate and inter-provincial commerce).
  
  
• Harmonization of regulatory language (agency, duel agency, designated agency, buyer agency, transactional brokerage, etc.)
  
  
• Harmonization of the rules of the game, e.g. definitions, licensing, regulation, business rules, agency, codes of conduct (standards of business conduct).

"For regulators, the reality is licensees are going to be part of the new way of doing business and utilize new and emerging technologies. Increasingly we will see more communication electronically and the emergence of the paperless transaction.

"Unlicensed activity, or unlawful activity by licensees, will take place. No one can prevent that. With the Internet it's easier to carry out. It's anonymous, and it's difficult to investigate and prosecute."

Myroniuk also called on regulators to step up their communication with consumers.

"In my view this is a legitimate and important role for regulatory agencies so we need to allocate resources in that area," he writes. "Consumers need top be aware not only of what is happening on the Internet and the benefits of on-line services, but also the potential areas of concern."

Published: December 6, 2000

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