Selling property is easier than before with Blockchain Real Estate

The blockchain is a revolution in technology that is being adopted by every industry. Blockchain can bring a drastic change in the real state business through its transactions, records, and marketplaces. Blockchain can secure and standardize real estate data. As real estate is an enormous industry and blockchain produces plenty of opportunities to standardize and secure real estate data. Land records, property listings, leases and mortgages, and government property tax offices could all benefit from a blockchain real estate revolution.

Moving from older methods to the latest technology is a very challenging task, as the real state is a very huge industry with many people including lenders, brokers, local governments and private citizens. Experiments are being made with blockchain to integrate the new technology in the real state.

Land Records

The basis of real estate is the land records, which shows the owner of the property through titles and deeds. Everything that happens in real estate is based upon this. However, they’re highly disorganized. Every local authority has its own rules regarding property records individually. Most of the time, these records aren’t easily even available online.

Now things are changing. Few projects in which Blockchain solution is being tested are:

• In Chicago’s Cook Country pilot project for land records which was initiated in 2016, in this project all information is digitalized and tested.
• Another similar project was launched in South Burlington, Vermont in January 2018.
• Recently Sweden implemented a private Blockchain using smart contracts in the second phase of its transaction to blockchain land registry to facilitate transactions. This project will save Swedish taxpayers an estimated $100 million per year.

Once property records are listed and secured in the blockchain, it creates a loss of opportunities. These records are easy to change and maintain. Smart contracts can also be used to manage and trade those records as well.

Property Listings

Currently, if anyone wants to sell the property, the only way is to list it with a local real estate agent. Also, the owner can also list the property for sale but real estate agents use multiple listing services (MLS) when they have a new buyer and any individual person doesn't have access to multiple listing services.

The MLS is especially tough to understand because it is fragmented. While in Blockchain property listings are easily available to access, anyone can review available property along with the terms and conditions needed for sale. Time is near when buying a home is as easy as purchasing grocery on an e-commerce website and adding home to the shopping cart. All the transaction-transferring funds will be handled by smart contracts behind the scene.

Smart Contract Property Management

Smart contract management is really an exciting feature of blockchain in real estate. Lots of paper-work and coordination between the bank, broker, seller, buyer, and local government is required in the current system for real estate transaction. Now, these tasks can be easily handled by the smart contracts.

The smart contract can also manage rental agreements, commercial real estate contract and other related tasks. Now dealers can automate the potential buyers and sellers. It can create the trust level between both parties which is not possible to imagine by this time.

Crowd Ownership & Investing

Crowd Ownership of property is another interesting feature in blockchain real estate, i.e. there are a group of owners of the same property purchased at the same time, then they decide to what to do with that property by voting. Owners have a share in property which they could sell when they want.

Moreover, with the help of blockchain, real estate investment trusts (REITs) and other real estate development investment vehicles could benefit from lower overhead.

What Happens to Realtors & Brokers?

It’s a slow process to bring change in the real estate industry, even with the transition with blockchain technology. In the current system, third parties including lenders, insurers make lots of money in coping with the challenges of navigating in the current system. So, this new technology threatening administrative and regulatory companies seriously.

According to them, in real estate business realtors and brokers will always be needed, they think that even with the latest technology people wants to see what they are buying before purchasing homes or offices they are considering buying. Experts will always be needed to make sure that the physical asset they are purchasing is in good condition before making a huge transaction, although the transaction is much simpler and quicker ever than before, people will still need the expert's guide.

Conclusion

Trends are changing continuously in real estate. Residential Houses prices keep increasing with the passing time. Ownership of home among young people is coming down. From online shopping, brick and mortar retailers are facing a threat. Our neighborhoods are changing and blockchain in real estate is confident that it will help to accelerate the change and will become part of it.

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This article by Bennett Garner was originally published at CoinCentral.com