Are Smart Homes Smart?

Smart home technology is the new upsell in real estate. Thousands of properties sell every day that have smart devices. Smart features allow a person to control devices remotely or allow its built-in intelligence to work for them through a preset program, IFTTT, or context-awareness.

These smart controls are available on devices throughout your house such as a doorbell, security cameras, sprinkler system, door locks, appliances, garage door, electric plugs, alarm system, speakers, and even lights. The problem we have run into in the past is that our Texas residential sales contract didn’t really address how to deal with all of the logins, passwords, and overall access to those devices. You would assume that when asked a seller would log out of the devices and never look back…but did they really? What if they don’t? Can you imagine the havoc a seller could wreak on a buyer by not terminate access to those devices?  This issue has now been added to paragraph 10c of the residential contract. Here’s how it reads:

10C. Smart Devices: “Smart Device” means a device that connects to the internet to enable remote use, monitoring, and management of: (i) the Property; (ii) items identified in any Non-Realty Items Addendum; or (iii) items in a Fixture Lease assigned to Buyer. At the time Seller delivers possession of the Property to Buyer, Seller shall:

(1) deliver to Buyer written information containing all access codes, usernames, passwords, and applications Buyer will need to access, operate, manage, and control the Smart Devices; and

(2) terminate and remove all access and connections to the improvements and accessories from any of Seller’s personal devices including but not limited to phones and computers.

Basically, at closing the seller has to pass on all access codes, login information, passwords, and apps that the buyer will need to manage and control any/all smart devices in the house. The seller also has to remove all access and connections to the home from their devices. How can you be sure that the seller terminates all access and connections? We like to assume the best in people, but first, make sure the logins given to you cover all the smart devices that are in the house.  After closing the buyer should change all access information for the smart devices (email, logins, passwords, etc.) to ensure that no one else has the ability to see or control any devices in the home. It’s a similar idea to changing the locks when you move in, you want to make sure that you have control over who has access to your new home. Then if you want to pull some risky business in the house, you can! (Get your mind out of the gutter, I’m referring to the Tom Cruise 1983 movie!)