Blockchain technology can potentially significantly influence the real estate market in all aspects, from purchasing property to due diligence and title management. We determine early adopters and the potential impacts.
With the blockchain’s impact on financial services and its subsequent use across all industries, it’s tough to identify a niche that isn’t influenced by the new technology.
Blockchain-based currencies have significantly impacted remittances, payments, and foreign exchange. Initial coin offerings (ICOs) have posed a challenge to the stock market startups, startup loans, and venture capital. The Food supply chain has been thrown into turmoil by blockchain technology.
What the Probable of Blockchain in Real Estate
1: Increasing Liquidity
One of the greatest uses blockchain technology can provide in this field is increased liquidity. Blockchain could create a platform for real estate firms to provide their services and properties for sale and purchase.
In addition, those who invest in real estate can also post their properties to increase their visibility. Blockchain public platforms are open to anyone to post their properties.
However, they’ll need to undergo an authentication process to verify their identity and avoid fraud. However, having a platform to buy and sell properties can help connect potential buyers and sellers more effectively.
2: Better Property Search Process
Finding the ideal property can be a hassle since there aren’t many websites that provide legitimate alternatives. Today, more people are inclined to search online rather than visit the property in person. It makes good sense to find platforms that have this kind of feature.
In most instances, these platforms provide very little access to the property. In the majority of cases, they charge costly subscription charges. Another problem with this kind of platform is the absence of up-to-date content. Most of the time, they don’t even check whether a property has already been sold.
Blockchain technology is extremely beneficial since brokers have direct control over the data, and the consumers will not have to deal with third-party companies. This is why blockchain technology for real estate could provide more options for searching for properties.
3: Full Transparency in Title Transfers
There are many horror stories about buying houses. From foreclosures to property history and more, there are plenty of possibilities of making mistakes throughout the process.
In the event of any of these, a home purchase can be re-purchased and cause numerous issues for the homeowner who is about to move in if there isn’t complete transparency during the transfer of title process and even legal issues when they buy the house of their dreams.
It is here that blockchain could truly help. By using blockchain-based smart contracts in real estate transactions, they will simplify the process of transfer of the title.
The buyer and the seller can see who is the current owner. Future buyers can see who the property’s owner was over time!
4: Automated Property Buy and Sell
The process of purchasing and selling property takes many hours. The prices can fluctuate, as with the fees charged by brokers, due to all the problems that the industry is slipping far behind. Thus, smart real estate contracts can make buying and selling property easier.
In actuality, blockchain technology could automate the entire process of buying a home. Consumers can visit an online platform where prospective sellers can showcase their properties.
They can see the property in person or take a virtual tour when they’ve selected one. Then all they need to do is to set up the specifications and then process the payment, and they’re finished.
The entire process will take just several days to complete.
5: Preventing Title and Deed Fraud
Another blockchain real estate usage instance is to prevent title and deed fraud. You’ll be amazed at the number of problems deed fraud has caused over the past 10 years. This type of fraud is growing rapidly, especially in property sales.
Additionally, they can sell their assets to outside entities without their knowledge. This is a bit scary initially.
However, since blockchain stores every property detail, owner information, and legal document in the ledger, there is no way that a third party could gain control of your assets.
6: Fighting Wire and Email Fraud
Do you realize that the number of real estate-related frauds using email and wires is increasing by 48 percent yearly? That’s a lot of victims who suffer a significant loss each year. In addition, this industry is quite expensive in the beginning.
This kind of crime makes people unwilling to invest in it. Criminals can pretend to be agents or businesses to lure people into donating money to them.
In the absence of an appropriate security procedure implemented, many agents are even able to have their identities stolen only to end up being a victim of criminal proceedings. Blockchain technology can cut down this amount dramatically. We aren’t sure if it will eliminate the issue, but it is certain to be a major force against it.
What Are the Benefits of Blockchain in Real Estate?
Blockchain technology is a type of record-keeping designed to be extremely difficult to alter. Blockchain technology works through decentralized peer-to-peer networks, thereby enhancing protection in the face of the proliferation of corrupt data and increasing the resistance to fraud.
Blockchain technology can solve a variety of issues in the real estate sector. It can help address issues such as:
1: Enhancing trust and transparency:
Blockchain technology is a reliable and censorship-resistant way to share details (such as details of valuation).
2: Reducing siloed databases:
Real estate-related processes can be benefited from secure and tamper-proof shared databases that combine information and documents from different stakeholders into one location.
3: Making transactions better:
The majority of property transactions are completed via wire transfers. They require expensive verification processes, which could take days to be completed.
Blockchain-based transactions can provide an efficient process that can be completed with rapid results and lowers costs.
4: The use of intermediaries is limited:
Many intermediaries, including brokers and companies that escrow money — may be obsolete due to blockchain-based solutions, as data can be stored, verified, and transferred with blockchain technology. Eliminating the need for intermediaries can drastically reduce expenses and also save time.
What companies are using Blockchain for Real Estate
1: Coldwell Banker
Coldwell Banker is one of the real estate giants developing blockchain-based solutions. They use blockchain to identify agents and sellers and provide transactions. They also want to simplify their contracts and transactions on the same platform.
2: National Agency of Public Registry
National Agency of Public Registry of Georgia is among the many examples of using blockchain for real estate commercial applications.
In actuality, Georgia is working on an option that can improve its transparency in real estate, reduce costs, and increase efficiency.
3: Prologis
Prologis is currently working on a solution focusing on logistics and real estate. This is yet another excellent idea to include in the Blockchain Real Estate projects on the list.
They are collaborating with Blockchain within the Transport Alliance (Bites) to establish royalty-free data standards for logistics companies.
4: Mata Capital
Mata Capital is a French real estate management company. It is currently working on blockchain-based solutions that focus on modernizing and optimizing the process of managing and disbursing funds from the investor register.
5: Dubai Land Department
Dubai Land Department is working on blockchain solutions for commercial real estate solutions. They are looking at an approach concentrating on recording all local real estate contracts to the ledger. They are planning to keep all relevant government documents to it in addition.
Why is a blockchain thought to be a great method for keeping track of real estate ownership records and other transferable assets?
The recording of ownership of property The potential impact on the field of title insurance as blockchain can provide a reliable and immediately verifiable confirmation of who owns the property and whether there are outstanding claims against it.
Blockchain technology for real estate is an area that requires greater exposure across the globe. It is a thriving area that is packed with corruption and criminal operations.
Yet, the importance of this sector is significant at the moment. Without proper guidelines, it is impossible to see how this industry can flourish and eradicate corruption.
It’s time for a change, and blockchain is adequate for the job. So, it’s just a matter of time before real estate firms realize blockchain’s value and adopt the technology.
