For the last few weeks my mailbox has been cluttered with good news from phone companies, banks, and even my CPA. Each has taken the time -- as required by the Gramm-Leach-Bliley Act -- to explain if they are giving out my personal data like beads at Mardi Gras.

My little community bank explained in great detail and clarity what it's doing with my data and what I could do about it. My long-distance phone company sent something that needs to be deciphered, while my CPA says she adheres to professional standards even more stringent than those required by law.

To which I say: "Thank you!"

As to real estate brokers, you're not likely to hear from them and with good reason. A review of the Act by the National Association of Realtors says that realty brokers and property managers are not generally required to comply because, for purposes of the legislation, brokers are not engaged in a financial activities "closely related to banking."

Appraisers who work for lenders, says NAR, are generally exempt from the rules, while appraisers who work directly for consumers are likely required to provide privacy disclosures. And, of course, realty brokers who offer mortgage services must provide disclosures when they act as lenders. For details and specifics, please speak with legal counsel.

I have no doubt NAR's reading of the new rules is correct and that brokers are generally not required to provide privacy statements. That said, I wonder if they should?

We live at a time when technology is becoming more intrusive and privacy is becoming less common. In the name of targeted marketing, everyone wants to know how you spend both your day and your dollars. And a very large number of people both resent such intrusions and seem resigned to them. They no doubt agree with Justice Louis Brandeis who wrote that the right to privacy is "the most comprehensive of rights and the right most valued by civilized men."

So why should brokers have privacy policies?

Because if I have a choice of dealing with broker Smith who has a privacy policy and broker Jones who does not, then all things being equal I'd like to hear more from Smith.

The real question is this: Why would a broker want to agitate vast numbers of people by not handling private information with great care? Why shouldn't brokers -- like my CPA -- have standards which exceed the barest national requirements? And why shouldn't they say what privacy protections they offer?

Imagine if you got a letter tomorrow from a broker in your community that said:

Dear Homeowner:

You've probably read in recent weeks that those who provide personal financial services are required to explain their privacy policies. While real estate brokers are generally not obligated to explain such policies under the new rules, we at Grille & Toaste believe that our clients and customers are entitled to know what we do with the data which arises from realty transactions.

In basic terms, the information we receive from you goes nowhere without your permission except as required by law. Information we receive may be accessed by our associates and staff in the course of business, and it may be delivered to other parties such as buyers, sellers, their brokers, and lenders -- but only with your knowledge and approval. Moreover, we maintain physical, procedural, and electronic safeguards to protect the information we receive.

Newly-enacted rules do not require that we undertake such policies, but like you we believe that privacy is an important matter. If you would like more information, we can send our complete privacy policy to you by mail or e-mail, or you can obtain a copy from our office or our associates at your convenience.

If you're a broker, why not review current and prospective privacy policies with your attorney? If you had such a policy would it create undue liabilities?

But once green-lighted by your legal adviser, the betting here is that you will have an instant competitive advantage.

For more articles by Peter G. Miller, please press here.

Published: July 12, 2001

Use of this article without permission is a violation of federal copyright laws.

Peter G. Miller, also known as OurBroker®, is the author of six real estate books -- including The Common-Sense Mortgage -- and is the original creator and host of America Online's Real Estate Center. Peter's weekly columns appear in more than 100 newspapers nationwide, he is also published in a variety of other media outlets and he is a frequent speaker at national events and conventions. Peter welcomes your questions, comments, and news releases via e-mail at .