Everyone’s in touch with modern technologies has already heard of blockchain. It is a term that’s been with us for a few years, but not many people understand it. However, we are not going to provide a detail explanation of what this technology is. We will say though that it can be utilized by the experts in various fields.
Given the circus-like atmosphere surrounding cryptocurrencies, it is easy to dismiss blockchain, the technology behind these coins, as an empty business. However, to do so would be unwise. Blockchain brings exciting possibilities to several sectors, including real estate.
Blockchain Opens Doors
Fintech startup Fluidity has developed a product that leverages blockchain tech to tokenize home equity. So, a property can now be split into digital shares that can be sold or traded. For real estate investors, the scheme means liquidity and a wider array of investment options. For borrowers, it could well equal lower rates.
Transaction Platform by Propy enables parties to collaborate and sign documents virtually, which accelerates the purchase process while protecting against scams like email wire fraud. Once documents are signed, they are time-stamped and committed to the blockchain. This process takes security to another level, as any attempt to manipulate the data will be recognized and rejected by the network. In layman’s terms, this makes blockchain data hack-proof.
Blockchain for Deed Registration
In any real estate transaction, the most important document is the deed or official written account of who sold what to whom. Registering a deed has historically involved a title agent physically delivering it to a county office. Unfortunately, clerks make mistakes, and deeds can disappear. By storing deeds on a blockchain, the human element is removed and the data is secured in perpetuity. This means that records can be accessed, even in the event of a natural disaster.
The city of South Burlington, VT has already started a blockchain-based deed registration system. The concept is also under consideration in developing jurisdictions, where a lack of clarity regarding property ownership has stunted economic growth.
Real Estate 2.0
Whether an agent is interested in the greater social good or is merely in streamlining the purchase and sale, he or she would be wise to cozy up to blockchain technology. It is more than just Bitcoin. As companies like Fluidity and Propy have shown, it is a powerful technology that addresses the industry’s issues with red-tape, spotty data security, and a lack of transparency.