Real Estate Is Now an Essential Business, but What Does That Really Mean?

Written by Celeste O'Hara Posted On Monday, 30 March 2020 05:30

Over the weekend the U.S. Department of Homeland Security Cybersecurity and Infrastructure Security Agency (CISA) updated their list of essential businesses during the COVID-19 pandemic to include residential and commercial real estate services (including settlement services) to the list. This might sound like excellent news for agents to get back to business, except for one huge caveat. From their announcement, “This list is advisory in nature. It is not, nor should it be considered, a federal directive or standard… Individual jurisdictions should add or subtract essential workforce categories based on their own requirements and discretion.”

In other words, the CISA list is a guideline, and while real estate may have made the cut on their list, it’s still up to local governments to judge whether or not real estate is considered essential in their state, county, or city.

In California, for example, the California Association of Realtors® (CAR) had previously released guidelines in response to Governor Newsom’s lockdown announcement on March 19th recommending that “REALTORS® should cease doing all in-person marketing or sales activities, including showings, listing appointments, open houses and property inspections. Clients and other consumers are also subject to these orders and should not be visiting properties or conducting other business in person.”

Since the release of the updated list of essential services, CAR is still not allowing open houses and is recommending that agents hold virtual showings when at all possible to decrease the amount of face-to-face interaction. That said, they are still defaulting to the discretion of even more local authorities. “If a city or county in which you do your business activity has an order with a more restrictive standard regarding what qualifies as an essential service, or more restrictions on activities, those guidelines will still govern the activities of a licensee. In other words, if there is a more restrictive local order, it must still be followed. That order may prevent or limit your ability to conduct real estate activity.”

So, yes, real estate is considered an essential business, but it also may not be depending on where you’re located, and what you are or are not allowed to do as part of your business may also be limited, making an already confusing circumstance all the more murky. Our recommendation is for agents to speak to their brokerages and to look to their local associations for guidance, but to also consult the plethora of information that the National Association of Realtors® has compiled to assist agents during this time.

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