Maryland DPA Agreements: Shield Real Estate Data Now

Why Maryland Real Estate Firms Need a DPA

Real estate operations in Maryland rely on a web of vendors—listing platforms, screening services, payment processors, marketing tools, cloud storage, and smart-device providers. These vendors often act as processors of personal information. A data processing agreement (DPA) documents how that information is collected, used, secured, shared, and deleted. In practice, DPAs help you:

• Clarify roles (controller vs. processor vs. subprocessor) across brokers, property managers, and SaaS providers.
• Establish minimum security measures tailored to high-risk data such as background checks, IDs, bank details, and geolocation.
• Address incident response, breach notification, and cooperation duties.
• Manage subcontracting and cross-border access or storage.
• Demonstrate diligence to clients, lenders, insurers, and regulators.

What Counts as Personal Information in Real Estate

Maryland real estate data can include:

• Tenant and purchaser identities, contact details, date of birth, government ID numbers.
• Financial and screening data (credit reports, income, payment history).
• Property access logs, surveillance footage, smart lock and thermostat data.
• Geolocation and device identifiers from mobile apps and showing technologies.
• Maintenance requests and communications that reveal personal circumstances.

Because much of this data is sensitive, your DPA should require appropriate technical and organizational safeguards and limit secondary uses.

Core DPA Clauses to Include

• Purpose, scope, and documented instructions: Specify the business purpose and prohibit use beyond the engagement.
• Roles and definitions: Identify controller/processor and any subprocessors; require prior notice and approval for changes.
• Security controls: Reference an information security program aligned with recognized frameworks (e.g., NIST-based controls), encryption in transit and at rest where feasible, access controls, logging, and secure software development practices.
• Data minimization and retention: Limit collection to necessary fields; define retention periods and deletion/return upon termination.
• Breach and incident response: Require prompt notice, cooperation, forensic preservation, and communication support.
• Audits and assessments: Permit reasonable audits or independent attestations (e.g., SOC 2 Type II) and vulnerability remediation timelines.
• Consumer/data subject requests: Require assistance in responding to access, correction, and deletion requests where applicable (e.g., FCRA for screenings; Maryland Online Data Privacy Act effective Oct. 1, 2025, where in scope).
• International transfers and remote access: Restrict offshore transfers or support access without prior approval and safeguards.
• Indemnity and limitation of liability: Allocate risk for security incidents and regulatory claims, subject to applicable law.
• Insurance: Require cyber liability coverage commensurate with the data risk.
• Termination and data return/deletion: Define methods and verification of deletion.

Maryland Legal Backdrop to Keep in View

Several Maryland and federal laws shape what belongs in a Maryland-focused DPA:

• Maryland Personal Information Protection Act (PIPA): Requires notice to Maryland residents of certain data breaches and submission of a copy of the consumer notice to the Maryland Office of the Attorney General. Your vendor contracts should ensure prompt cooperation so you can meet statutory timelines. See the Attorney General’s guidance and statute: OAG Breach Guidance; Md. Code, Com. Law § 14-3504.
• Fair Credit Reporting Act (FCRA): If you use consumer reports for tenant screening, you must have a permissible purpose and follow adverse action procedures; your DPA should address secure handling and proper use of consumer reports. See FTC: FCRA.
• GLBA Safeguards Rule (financial services): Mortgage brokers and certain settlement-service providers handling customer information must maintain appropriate safeguards and oversee service providers. See FTC: GLBA Safeguards Rule.
• Maryland Online Data Privacy Act of 2024 (MODPA): Effective Oct. 1, 2025, MODPA imposes controller/processor obligations—including contracts with processors—and provides consumer rights, with various entity and data exemptions (e.g., certain GLBA- and FCRA-regulated data). Assess whether your operations fall within scope. See SB 541 (2024).
• FTC Act Section 5 and state UDAP principles: Unfair or deceptive data practices can trigger enforcement; align vendor representations with your privacy notices. See FTC Act § 5.

Your counsel can tailor DPA language to your specific role (brokerage, property manager, lender-affiliated entity) and data flows.

Vendor Due Diligence Checklist

Before signing a DPA, evaluate the vendor:

• Security posture: Written information security program, encryption standards, access controls, vulnerability management, secure SDLC, and employee training.
• Independent assurance: SOC 2 Type II report, ISO 27001 certification, or comparable assessment; review scope and exceptions.
• Subprocessors: Who they are, where they are located, and how they are overseen.
• Incident history: Past breaches, remediation actions, and regulatory inquiries.
• Data residency and transfers: Data center locations and cross-border mechanisms.
• Data lifecycle: Collection, minimization, retention, and deletion practices.
• Support for consumer rights: Ability to assist with access, correction, deletion, and appeals where applicable.
• Insurance and financial stability: Coverage limits and carrier, plus financial health.

Quick Tips for Maryland Teams

Practical Steps to Implement

• Map data: Identify which systems and vendors process personal information and why.
• Standardize your DPA: Maintain role-based templates (controller-to-processor, processor-to-subprocessor) with negotiable and non-negotiable terms.
• Tier vendors by risk: Apply deeper diligence and stricter terms to screening, payments, and access-control providers.
• Align your privacy notice: Ensure vendor use matches your disclosures to consumers.
• Test incident playbooks: Run tabletop exercises with key vendors and define clear points of contact.
• Monitor and renew: Calendar audits, certificate expirations, and re-assessments; verify deletion at contract end.
• Train teams: Educate leasing agents, property managers, and IT on DPA obligations and escalation paths.

Common Pitfalls in Real Estate

• Relying on generic SaaS terms that omit breach cooperation, deletion verification, or subprocessor controls.
• Over-collecting tenant data without a clear purpose or retention schedule.
• Allowing unrestricted offshore support access to production data.
• Treating smart-building telemetry as non-personal when it can be linked to residents.
• Failing to align FCRA obligations with vendor practices for tenant screening.

FAQ

Do Maryland real estate firms need a DPA with every vendor?

If a vendor processes personal information for you (e.g., screening, payments, access control, cloud hosting), a DPA is strongly recommended and may be required under applicable laws or industry obligations.

How fast must vendors notify us of a breach?

Your DPA should require prompt notice (e.g., without undue delay) so you can meet Maryland breach-notification timelines and notify the Maryland OAG when required.

Does MODPA apply to small property managers?

MODPA contains applicability thresholds and exemptions. Assess scope with counsel; even if out of scope, DPA best practices still reduce risk.

Can we allow offshore support access?

Only with express approval, documented safeguards, and auditing. Your DPA should restrict such access and require controls.

What proof of deletion should we get?

Require verifiable deletion or return of data at contract end, plus a certificate of destruction within a defined timeframe.

When to Update Your DPA

Revisit your DPA when you adopt new technologies (smart locks, AI leasing agents), expand into mortgage or insurance services, change hosting providers, enter new jurisdictions, or after a security incident. Vendor business changes—mergers, new subprocessors, or material security updates—also warrant review.

How We Can Help

We draft Maryland-focused DPAs for brokerages, property managers, developers, and proptech vendors, and we negotiate vendor terms to align security, privacy, and operational realities. Our team can map your data flows, triage vendor risk, and build practical playbooks that satisfy legal requirements and client expectations. Contact us to get started.

Ready to shore up your vendor contracts? Schedule a Maryland DPA review today.