Homeowners associations are increasingly using surveillance technology, including license-plate readers, raising privacy and disclosure concerns for real estate agents and homebuyers. Realtors are seeking clear guidelines on how to address these systems, which can impact a buyer's decision and create liability if not properly disclosed.
The proliferation of surveillance technology in residential communities creates potential privacy risks and disclosure liabilities for real estate professionals and homebuyers, impacting property transactions and the perceived safety of neighborhoods.
The increasing adoption of surveillance technologies by homeowners associations (HOAs) is creating new due diligence challenges for real estate agents and homebuyers, particularly concerning privacy and disclosure. Companies like Flock Safety provide automated license plate readers (ALPRs) and other surveillance tools that HOAs are installing, often under the guise of enhancing neighborhood security against issues like porch piracy.
Realtors, such as Leigh Brown, are highlighting the potential for these systems to create significant privacy risks for buyers, especially those with personal safety concerns like temporary protective orders. Brown emphasizes that if a buyer's presence in a monitored neighborhood is captured and accessible to law enforcement, it could inadvertently reveal their location to individuals they are trying to avoid. This raises questions about whether such surveillance constitutes a "material fact" that sellers and their agents have a duty to disclose.
Mike Schwab, CEO of Association Online, notes that while surveillance systems are not yet widespread among HOAs, their prevalence is expected to grow, particularly in gated communities. He points out that many HOA governing documents were created before these technologies existed, leaving boards and residents without clear protocols. Schwab suggests that agents must proactively ask HOAs about surveillance systems, as disclosure is not always mandated.
Concerns extend beyond ALPRs, with some HOAs exploring AI-powered cameras that can scan for covenant violations. The data collected by these systems is often stored in the cloud by private companies and can be accessed by law enforcement agencies, raising further privacy questions. Brown advocates for a simple yes-or-no disclosure question on real estate forms regarding the presence of HOA surveillance cameras, similar to disclosures for floodplains, to ensure buyers are informed upfront.