PropTech Platforms
Liability Check
PropTech platforms handling property inquiries, KYC documents, and financial data for loan referrals face immediate scrutiny under the DPDP Act. Sharing this data across your broker network without proper consent drastically escalates your liability, inviting penalties up to ₹250 Crore.
Why PropTech Platforms is at Risk
PropTech companies are data hubs, from a tenant's initial property search in HSR Layout to a buyer's loan application for a penthouse in Bandra. Every interaction generates personal data: contact details, financial information, and even property preferences. **Sharing this wealth of user data with brokers, lenders, and service providers without explicit, granular consent** is a direct violation. The DPDP Act demands transparent processing, specific consent for each purpose, and robust data protection, turning your partner ecosystem into a potential **compliance minefield**.
Common Violations
- 1.Collecting user contact details for 'property inquiries' and then sharing them with multiple brokers and marketing partners without specific consent for each sharing instance.
- 2.Storing KYC documents (Aadhaar, PAN) beyond the tenure of the rental/purchase agreement without a legitimate, consented purpose.
- 3.Using geo-location data from site visits or browsing history to infer user preferences for targeted advertising without explicit opt-in.
The Immediate Fix
Conduct a thorough data mapping exercise to understand what personal data is collected, where it's stored, and with whom it's shared at every stage. Implement granular consent flows for each distinct data processing activity (e.g., sharing with broker, loan application, marketing). Update all partner agreements to clearly define data processing roles and responsibilities under DPDP.
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Projected Compliance Deadline: Immediate