Oct 16, 2018 12:30 UTC
Oct 16, 2018 at 12:30 UTC
Blockchain In Real Estate
Much has been talked about blockchain, bitcoin and the related technologies. For many real estate professionals, this is a part of the new, brave and confusing world of technology. Similar to the original internet, blockchain acts as a revolution in technology that will touch not just people but businesses too. Thus, people are paying special attention to this technology.
Imagine a place where you don’t need to look for any middleman to sell the house or deal with untrusted people to purchase a land. All you need to do is to give all the necessary data, and you’re directly linked to the potential buyers and sellers. This is possible with Blockchain Technology.
This is possible with Blockchain Technology! By changing the way data is stored and exchanged digitally, blockchain can exponentially improve the way we finance, transfer, record and manage real estate industry.
Real Estate And The Blockchain
For Real Estate, blockchain has that potential to completely change the way people do the business. Indeed, people are developing smart contracts, which will help real estate contracts and property records to be completed and monies distributed with no help of title companies or attorneys. Such contracts are usually compared to a vending machine concept that says, “You deposit money, and the machine dispense a product with no human intervention”.
In the coming future, it might be possible for the homebuyers to invest in a home and finish the sale by clicking on a shopping cart button on a website. The blockchain will make sure that the buyer gets the deed or title and the seller gets the cash with the utmost ease. The blockchain technology will additionally record the deed or title to the right public records, for example, a county in the United States or similar.
Real Estate professionals will keep on thriving in the blockchain era. The knowledge, advice and hand-holding of real estate professionals will dependably be a significant part of a buyer or seller’s process. Although, the handling of transactions as well as money will inevitably change, and that change is underway already. Brokerages will have to adapt their business models for the purpose of understanding and enabling smart transactions. Otherwise, they will continue to thrive in the blockchain era.
How Can Blockchain Transform Real Estate Industry?
Blockchain technology is meant to support only trusted transactions through a shared network. Any information put on this network of blockchain cannot be corrupted by any means. In this way, blockchain technology allows for completely safe and secured transactions. Such specific characteristics make this technology more unique and useful for real estate payments.
The real estate industry may have to go through major transformations through this unique technology. Blockchain will work like a catalyst for the coming generation of new applications as well as business opportunities, where the need for transparency is finally being addressed.
Also, it helps in the creation of decentralized database which contains the information of all available properties around the globe. It can be a public list of who is the owner of what. Every one of these implications haven’t been lost to the individuals from the IBREA (International Blockchain Real Estate Association).
Currently, IBREA has 400 individuals who plan to propel the benefits of the blockchain in the real estate industry. The formation of an efficient, cost-saving, convenient and fraud-free program is relatively inevitable.
The Topnotch Advantages Of Using Blockchain Technology
Undoubtedly, the blockchain technology can leave a great impact on the real estate industry. Below are some approaches this technology could be used for –
Just imagine having all the title deeds on the blockchain. When this happens, anyone would be able to access the data effortlessly. They won’t require anybody’s permission to access the data as they will get it digitally on their own.
So far as the owners of the land are concerned, they would be assured that their title deeds are completely safe and secure. Since title deeds are to be verified by the ecosystem, there is a surety for them to be legitimate. This will result in taking the land grabbing to an end, as and when someone buys a property, they are given a token as a proof of their ownership on the land together with the title deed.
Smart contract is something that is made by the seller and the buyer. At the point when the seller is willing to sell the property, they can put all the required property details on the blockchain. This information will be available to all the buyers interested in buying the property.
In addition, the seller will get the access to all the essential information of the buyers. Since there is an immediate exchange of data, transaction could be done with the utmost ease and in less time as well as friction.
After a particular time frame, the tenant needs to vacate the property and ask a refund in a rental market, the blockchain can sort the shares of both the tenant as well as the property owner itself.
At the point a transaction is completed, you don’t have to wait for the cheque to clear. Also, the exact amount will be moved from the buyer to the seller automatically. As there are no middlemen or centralized authority, you don’t need to pay any intermediary.
This way, transactions become highly cost-efficient. Every single user get a unique identification number on the blockchain, that is shared securely. The use of virtual currencies reduces the chances of any theft and fraud.
You read that perfectly. The use of blockchain technology also allows better geographical liberty. Presently, there are numerous expats who find it a daunting challenge to apply for the rentals and purchase properties outside their home country. However, as the blockchain doesn’t discriminate between sellers and buyers based on their location, transaction can be done without stress, doesn’t matter in which part of the world you are.
In this world of shifting technologies, it has become easier to come up with solutions which can improve different industries.
The key point is to keep up with the latest trends. One needs to know how to maximize the technology to their own advantage. In an article by the president of the International Blockchain Real Estate Association (IBREA), Ragner Liftrasir wrote –
“The blockchain technology had finally made it possible for people to transfer the information effortlessly, paperlessly, quickly and cheaply.”