The real estate remains one of the most lucrative areas to invest and attracts people from all over the world and stands to benefit a lot from the blockchain technology. The field has historically been relying on old methods of doing business and record keeping. New technologies have now started reshaping how people conduct business, and the blockchain has been very vital in transforming fields such as insurance and the banking industries. Despite the high value of the real estate market, it has attracted frauds, and a lot of people have lost hard-earned cash to cons in the market. The following are practical ways that blockchain is impacting this field.
The current set up when transferring real estate assets from one party to the other can be pretty tiring. It usually involves a lot of intermediaries, which results in time wastage. A smart contract will eliminate the need to involve a middleman as it self-executes once certain conditions are met. The seller will feed the blockchain with all the necessary information about the property for the buyer to view. The data is then stored in a secure and encrypted block. The computer protocols will then check on the authenticity of the information to ensure that the transaction is legitimate.
Tokenization of real estate assets
Even though real estate is very lucrative, many people just dream and never get the chance to own a single property under their name. Others take years to save and invest in real estate while others spend the rest of their lives servicing debts. Blockchain allows potential investors to own bits of a property through tokens. It also makes it possible for people in different tax brackets and regions to invest in real estate through partial ownership. Liquidation is also very easy as one can sell tokens through secondary markets. A property owner can also dispose of a portion of his or her assets through issuing tokens.
Ensuring that one does not buy a property with a defective title has always been an issue in most countries, and this scares away most potential investors in real estate. Research shows that experts find at least 25% of title deeds being processed having defects such as fraud, omissions and other errors. Most investors result to seek title insurance to avoid losses in this field. A public blockchain can solve all these problems as it displays all the relevant information for the parties concerned. The fact that the platform is secure and immutable builds trust, which is essential in real estate. A good example of a startup in this field is SafeChain.
Dealing with tenants is not that easy, especially if you do not have enough time at your disposal. Some people result in assigning the tasks to property managers, which is somehow expensive and wasteful. Most property owners use paperwork, while others have software and applications that have problems integrating. Decentralized apps can help manage such property through one interface. A landlord can display the information of vacant units for potential clients to view. The two can then sign on the platform digitally without the need to meet.