In everything we do, whether it be drafting paperwork, gathering data or information about transactions or people’s personal information, writing plans or agreements down, we use lots of documents, paperwork, files and more to share and produce data and information.
In the real estate industry, it is very common for agents to print, email and scan thousands of paper copies of documents all throughout their businesses to share amongst colleagues, clients and prospective buyers.
Although this may be the norm for the real estate industry and was once easily manageable and convenient. Blockchain is proving to be the pinnacle in the evolution of the real estate industry by not only reducing paper waste but many cases of fraud.
According to an article written by Max Coursey for Forbes magazine: ‘How Blockchains will transform the real estate industry’ the use of blockchains in the real estate industry will assist with “drastically reducing fraud, reducing paper waste and minimizing mistakes,”. Blockchain development will accurately store and file all necessary documentation and information concerning commercial and market properties.
For those that aren’t sure about what real estate fraud is; real estate fraud is when a person or party makes a misrepresentation or uses false information to take advantage of the other party during a real estate sale or purchase.
There have been many cases where people were involved in real estate fraud due to poor communication and zero database security measures in the real estate industry.
There were two cases in Western Australia in both 2010 and 2011 where properties were sold without the consent and knowledge of the legal property owners. The real estate agent involved in these cases thought he was dealing with the property owners; however, he was dealing with three fraudsters in another country.
It’s safe to say that with blockchain security strategy and blockchain development throughout the real estate industry, there will be limited real estate fraud cases and agents will be at a lesser risk of dealing with fraudsters.
So, how will blockchain stop this fraudulent behaviour from occurring?
Luckily with extreme developments and advancements in technology dealing with real estate sales, transactions and data sharing has been made very easy and convenient.
This means that there is a minimal risk for incorrect or false information to be shared, better management of data and information, as well as there being a much more effective and final procedure of completing full transactions between agents, owners and buyers to minimize the risks of a data breach and or fraudulent behaviour.
In the real estate industry, according to McKissock learning; the blocks contain the information and the chain is the network. Many real estate agents believe that a blockchain association is indeed the key solution to better management of customer data, information, transactions and sales as well as minimizing the risk of real estate fraud.
In the real estate world, blockchain application development will encourage the blocks to contain all necessary data and information about any transaction, the people involved in the transaction, identifiable by unique codes provided by blockchain security tokens. These blocks of data can then be added to the chain which is the network each time a transaction has been finalized or a new transaction is underway.
This blockchain process will run much more efficiently and allow for the important data, transactions, and personal information regarding a property and legal property owners to be managed in a safer and easier digital method that ensures neat and organized documentation.
Not only does this blockchain process ensure a neater and organized management of information, the new Blockchain security tokens and developments made to the real estate industry will ensure a stronger security measure by making sellers and buyers only identifiable by a unique code and each agent and participant will have to go through a series of verification processes to ensure all information is kept the same throughout a payment, buying or selling process; whilst also ensuring that the people being dealt with are in fact real people and not potential threats to the real estate industry.
In a mortgage process, for example, blockchain can serve as a shared ledger that creates and manages the pieces of a mortgage. Since the documents and data during a mortgage process will be encrypted in blockchain, all information will be safe and secure. Minimizing the risk of data breaches and fraudulent activity.
In conjunction with the blockchain security measures, third-generation blockchain developments will ensure that transactions are processed quickly so that banks and regulators have efficient and easy access to all information, transactions and data.
Let’s not forget that there can be issues arising between homeowners and banks when it comes to receiving a title for a home. Sometimes information in regard to legal homeowners payment history on any property can’t be located by banks when they search through paperwork and dated online servers.
This is where blockchain developments can also assist and change the way the real estate industry operates forever. With blockchain storing and documenting home-owners titles once a property is legally paid off and recognized by the banks, When a legal home-owners wishes to receive their title, blockchain data will easily store all information, transactions and payments history between the owner and the bank and ensure that data can be accessed and interpreted safely and easily making the title process an efficient and easy process and home-owners can then be awarded their title.
In a nutshell, it is safe to say, that blockchain is set to transform the real estate industry for good. With blockchain smart development and blockchain developers in Australia is the main area of data, information and transaction storage for all real estate information and documentation, it is safe to say that with this digital advancement and efficient blockchain data storage the real estate industry will be running effectively on well-managed data and there will be a significant reduction in real estate fraud.November 4, 2019