How technology is streamlining compliance in real estate

Compliance is a cornerstone of the real estate sector, where accuracy, security, and efficiency are essential for smooth transactions.

Historically, compliance has been a resource-intensive process, involving significant administrative burdens and risk of human error. According to data from SmartSearch, 69% of estate agents rely either partly (24%) or fully (45%) on manual compliance processes. Meanwhile, a report by LexisNexis Risk Solutions and Oxford Economics found that people-related components accounted for around 70% of compliance costs in the UK.

However, advancements in proptech are revolutionising this landscape, providing real estate professionals with tools to streamline workflows, enhance accuracy, and ensure robust compliance – all while cutting costs.

In this article, we look at recent and emerging technological developments that are streamlining compliance in the property sector, from AI and automation to blockchain technology and our flagship Redpin Payments platform.

Blockchain for secure record-keeping

Blockchain technology is a key innovation within the proptech ecosystem, offering secure and transparent record-keeping for real estate transactions. It’s a way of recording information across multiple computers so the record is easily audited and can’t be tampered with. This is particularly valuable in maintaining property transaction histories and ownership records.

In addition to enhancing security, blockchain enables smart contracts – self-executing agreements where terms are enforced automatically once certain conditions (such as payments) are met. This can simplify complex real estate transactions, reduce the need for intermediaries, and enhance compliance by ensuring that all parties adhere to agreed terms.

Although still in its early stages, blockchain’s ability to increase transparency and security makes it an exciting technology to watch. Land Registry authorities in various countries, including the UK and Sweden, have conducted blockchain trials in recent years, highlighting its potential to transform real estate compliance.

Digital payment platforms for streamlined compliance

Redpin Payments – our unique payment platform – is revolutionising payment management in real estate transactions, offering professionals a powerful tool to streamline compliance while improving efficiency and security.

By enabling property lawyers, real estate agents, and notaries to manage payments digitally, Redpin Payments tackles common challenges such as last-minute delays, back-and-forth emails, and the risks associated with unsecured communications.

The platform’s secure payment portal is also protected by multi-factor authentication and robust encryption, reducing the risk of fraud, impersonation, and payment errors.

Compliance is at the heart of our platform. Built-in tools make it easy to adhere to key legal obligations, including anti-money laundering (AML) and know your customer (KYC) requirements.

Features such as detailed payment histories, ID verification, and approvals from the Bank of Spain ensure full transparency and create a clear, auditable record of each transaction. These capabilities not only help real estate professionals meet regulatory requirements but also enhance trust and accountability in property deals.

AI-powered analytics for risk detection

Artificial intelligence (AI) and machine learning are major drivers of innovation in proptech, equipping real estate professionals with powerful tools for risk detection and decision-making.

For example, AI-powered platforms can scan contracts and other documents for discrepancies, flagging potential compliance issues such as missing signatures or clauses that deviate from standard terms.

Moreover, predictive analytics can help legal teams assess risks more effectively. By analysing patterns in data, AI can identify trends and anomalies, such as unusual payment activities that might indicate fraud. This allows lawyers and agents to take proactive measures, reducing the likelihood of compliance breaches.

Automated document management

Document management is a key area where technology is alleviating administrative burdens. Automated document management systems (DMSs), such as Clio and NetDocuments, allow real estate professionals to store, organise, and retrieve critical documents quickly and securely.

These platforms often integrate features such as automated document generation, which reduces the risk of errors by pre-populating templates with verified data.

Additionally, many DMS platforms incorporate version control and audit trails, ensuring that all changes to documents are logged and that the most up-to-date versions are always accessible. This not only enhances compliance but also provides a clear chain of accountability in case of disputes or audits.

Digital ID verification and checks

Digital ID verification tools are transforming the way real estate professionals handle identity checks. For example, platforms such as Onfido and Veriff have gained widespread adoption among real estate firms, helping them meet stringent regulatory requirements efficiently.

These systems combine document uploads with facial recognition technology to verify identities remotely. This can significantly speed up the verification process, particularly for international property transactions in which buyers or sellers may live overseas.

Beyond ID verification, advanced tools for automating AML and KYC checks are becoming indispensable. For instance, platforms like SmartSearch and ComplyAdvantage offer automated solutions that cross-reference client data against global databases, sanctions lists, and politically exposed persons (PEP) lists.

These systems can flag potential compliance issues in real-time, providing detailed risk profiles for clients and reducing the need for manual checks. By integrating these tools, legal professionals and estate agents can not only meet regulatory requirements but also improve overall efficiency and security.

Final thoughts

Technology is transforming compliance in real estate, helping professionals reduce administrative burdens, improve accuracy, and mitigate risks. From established tools to emerging proptech innovations, these technologies are redefining how compliance is managed in property law and the real estate sector.

For property professionals striving to stay competitive, embracing these technologies is no longer optional – it’s essential. Platforms like Redpin simplify compliance by integrating security, transparency, and flexibility into payment management, allowing professionals to focus on delivering exceptional service to clients.

To explore how Redpin’s solutions can support your compliance processes, speak to an expert today.