Blockchain Technology will revolutionize the real estate industry.
Buying a new home can be a long complex process. Buying commercial real estate can be a lot more complex too. However, can blockchain technology change all that?
There are lots of new fin-tech startups around the world breaking into the real estate industry and their proving that Blockchain technology has lots of benefits for those involved in the industry.
Less developed or smaller countries are much more likely to pick up blockchain technology in real estate because the system they currently use is quite bad. They don’t have much structure to start with so shifting to a refined system will allow them to reap more benefits. You’ll probably find by 2027 the real estate industry worldwide will of adopted blockchain technology.
Blockchain technology will reduce legal problems, require less accounting and cut transactions costs too. There is also likely to be less fraud. Blockchain technology is good for real estate because it rules out the need for brokers, escrow companies, inspectors, appraisers and a few other common intermediaries.
Removing the normal people you need to talk to will make the way for Smart Contracts. This is computer code that automatically executes commands if a set condition is met. So an example of a smart contract would be when you pay a vending machine it releases the item. While real estate sales will be more complicated there are a number of start-ups exploring new business models. There are start-ups that allow rooms to be rented. When a payment is made, the door unlocks.
So to summarise, why is it good?:
Information and data are stored in a database that can be accessed easily by the buyer and seller. The information about prices is available for everyone.
Removes the risk of fraud
A totally transparent system of real estate owners will be great for the industry. If you’re able to mark down each transaction and look at the history of transactions, the risk of fraud goes down. Each year, a tonne of money gets spent on verifying the ownership of properties, the rights, and title transfer. Block chain technology will make it possible to have accurate records that can identify ownership. This will make buying property much easier, safer and makes it much easier to buy or sell the property.
Speeds up the process
Smart contracts allow us to make deals much easier. Think of it like this will happen if that gets done. Smart contracts make things so much easier.
While there are many benefits for blockchain technology in real estate, it is still in its early days. So you should consider talking to a law firm or an experienced firm that can give more details about blockchain technology. Check out Goodwin Law and see how they can assist you.
August 29, 2017