GREC REnews, Vol. 1, Issue 8 (Aug. 2005)

Georgia Real Estate Commission

GREC RENEWS

Volume 1, Issue 8 August 2005

2005 Dates to Note
August 4, 2005 Trust Account Class Brunswick Glynn County Board of REALTORS (912) 264-291
August 25-26,2005 Georgia Instructor Training Workshop (GIT) Macon Central Georgia Technical College (404-252-6768 or 800-633-35823
September, 2005 Trust Account Class Brunswick Glynn County Board of REALTORS (912) 264-291
December 1 - 2 GREC Annual Schools Meeting
GREC Disciplinary Sanctions

INSIDE THIS ISSUE:

FACTA

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FACTA Definitions 2

Focus on Terminology:
"Hiatus, No Mans Land, Ransom Strip"
Georgia Real Estate Commission
Suite 1000, International Tower 229 Peachtree Street N.E. Atlanta, GA 30303-1605

It's a FACTA !
If your office does not have a record disposal policy, it's time to develop one. Effective June 1, 2005, persons who possess or maintain, for a business purpose, consumer information derived from consumer reports must property dispose of such information. Information includes credit reports, records of insurance claims and other personal information. Many real estate files hold this type of data. Therefore, the burden on licensees is to safeguard client and customer information and take reasonable measures to protect against unauthorized access to or use of the information or access to it in connection with its disposal. (Part, I page 4 of ruling) The Federal Trade Commission (FTC) released its final ruling November 2004 regarding the Fair and Accurate Credit Transactions Act of 2003 (FACTA). The intent is to safeguard consumer information to help combat fraud, such as identity theft. Service providers are included in this ruling. Thus, real estate licensees must properly dispose of consumer information they possess or maintain. The list of service providers is broad and includes, but is not limited to, lenders, insurers, employers, landlords, mortgage brokers, automobile dealers and many more. (Part IV.,C., page 27 of ruling) Clearly, real estate brokerage is a service business and consumer information is an integral part of the real estate business and some company marketing programs. Three significant terms in the ruling are critical to its purpose, and they merit scrutinizing: Consumer Information: "any record about an individual, whether in paper, electronic, or other form, that is a consumer report or is derived from a consumer report. Consumer information also means a compilation of such records. Consumer information does not include information that does not identity individual, such as aggregate information or blind data." (Part 6862.1(b)
page 33 of the ruling) Disposal:" (1) the discarding or abandonment of consumer information, or (2) the sale, donation, or transfer of any medium, including computer equipment, upon which consumer information is stored." (Part 6862.1(c) page 33 of the ruling)
The ruling actually provides an entertaining, yet incomplete list describing possible disposal methods:
Shredding "Wiping" (overwriting electronic data) Burning Pulverizing Destroying: "smashing with a hammer" Using Waste Disposal Companies Imagination provides limitless possibilities.
continued on page 2 X
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Georgia Real Estate Commission
Suite 1000, International Tower 229 Peachtree Street N.E. Atlanta, GA 30303-1605
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Definitions Related to Records Disposal
continued from page 1...
Consumer Report: "any written, oral, or other communication of any information by a consumer reporting agency bearing on a consumer's credit worthiness, credit standing, credit capacity, character, general reputation, personal characteristics, or mode of living which is used or expected to be used or collected in whole or in part for the purpose of serving as a factor in establishing the consumer's eligibility for credit or insurance to be used primarily for personal, family, or household purposes;
(B) employment purposes; or (C) any other purpose authorized under section 604 [1681b]." Exclusions to this definition are not listed here.
(The full, formal definition of consumer report in The Fair Credit Reporting Act can be accessed at: http://www.ftc.gov/os/statutes/fcra.htm#603 )
These definitions can serve as guidelines to determine what information needs to be safeguarded.
Each company is unique in its use and treatment of information and the circumstances for appropriate maintenance and disposal vary. Careful planning will ensure that reasonable disposal methods are established for safeguarding sensitive personal information and complying with this rule.
The entire ruling and a summary can be viewed at the following links:
http://www.ftc.gov/opa/2004/11/factadisposal.htm

http://www.ftc.gov/os/2004/11/041118disposalfrn.pdf

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GREC

Focus on Terminology: "Hiatus, No Mans' Land, Ransom Strip"

Assemblages of real estate can be a challenge. Matters are made more difficult if two (or more) properties have a gap between them so that they do not share a common property line. When there is a strip of land that is not included in the legal description of either of the adjacent properties, or another's deed, it is referred to as a "Hiatus" or " No Mans Land."
A survey or recorded plat should make this lack of common boundary apparent. However, old plats and abandoned alleys or roadways can create an area of land that appears to be owned by no one. When an alley or a right of way is abandoned, the state or county regulations determine how the land is to be distributed or if it is to be retained by the local government. If two parties (or more) border either side of the

right-of-way for its full length, it may be that each owner can obtain title to their adjoining half of the right-of-way up to its centerline.
Be careful when dealing with older subdivisions containing alleys or abandoned roadways. The contract property description for the purchase of lands on both sides of such an abandoned right-of-way should include whatever rights there are to that hiatus.
A certified survey can determine existing property lines, but it may be necessary to retain a title company or an attorney to obtain affidavits to clarify and solidify the rights to the gap of land inbetween the properties.
If one property owner feels he/she is in a greater negotiating position, this land may be used as a "Ransom Strip" to gain extra payment for the release of rights to the no mans land.

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