The Practical Lawyer


GDPR – data rooms

If L is planning to sell a property subject to leases, then almost certainly a data room will be set up containing all relevant documents.

In that situation it is important to appreciate that GDPR applies to the data room to the extent that it contains the name and address of Ts who are individuals, and potentially details of any arrears they owe. This will be their personal data, although it will not be sensitive data (which would include items such as health, ethnicity etc).

Ls need to ensure that any ‘processing’ of personal data is GDPR compliant. Simply collating such information about individuals for insertion into the data room will be ‘data processing’. As such, the processing must be appropriate and lawful; the individuals should have been informed about the processing (typically this will be by L serving a ‘privacy notice’); and there must be appropriate internal policies and procedures to govern the processing of personal data.

In practice, therefore, an appropriate ‘privacy notice’ will be essential. This must explain the purposes for which the data is processed (eg in connection with valuations, refinancing and disposal of L’s assets; collection of rents; conduct of rent reviews; other matters arising under the lease); retention periods for data; details of third parties that the data may be shared with (eg managing agents, professional advisors, lenders, potential purchasers and valuers); and how individuals can exercise their GDPR rights. Source: DAC Beachcroft.


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