Let’s see how blockchain technology can benefit people who are into real estate business:
Centralized Information Bank
A typical real estate transaction involves two parties, that is the buyer and the seller, agreeing to pass the deed and the money to each other. The transaction also calls for particular legal documents in order to make the transaction legally authorized.
In the current setting, it’s impossible to carry out a property deal remotely if both parties are placed in different locations, since those legal documents are all stocked at different areas, and there’s no synchronization in dissecting them. By integrating blockchain technology, this process can be done immediately since the data can be acquired from a centralized source of information and can be updated immediately at different nodes.
Reducing the process time
The involvement of middlemen is only because they have information that don’t have access to or you’re missing out on the skills required to function in the current real estate transaction system.
At present, the deed to a possession is a piece of document. In order to transfer a possession, you’ll be required to fill out a deed, sign it, get it attested, and send the document to your local authorities to be stored in the government database.
This is a very outdated method of process and a really slow one. Also, there is too much money and time is being wasted in this way of transaction.
But, blockchain integration into the real estate sector can assist you in distributing database where anyone can enter data, without it being evaluated, and it doesn’t require any authorization. Anyone with the required authorization for scrutinizing and fetching the related information can extract the data as far as they’re granted permission. It also speeds up the processing time generally taken by government authorities. And it also eliminates the involvement of escrow services or a third-party mediator.
This intends that people no longer have to be concerned about neither the title transfer getting delayed without escrow service getting involved nor being charged a percentage of total value of sale by the third party.
Eliminating Fraudulent Acts
It is not possible to entirely eliminate the risks of fraudulent acts. Producing counterfeit documents of the property, or forging notary stamps, is no more a difficult task. However, blockchain shuns the requirement of a written record. With the integration of blockchain, one can securely view and verify the ownership information of a property stored in the blockchain network.
Due to the decentralized computing policy of blockchain network, it is impossible for anyone to counterfeit the values in the block since footprints of the original document is distributed across several systems.
Blockchain do possess effective, much-required solutions for the real-estate field, particularly in terms of legal documentation and property records. However, blockchain technology has not emerged as a possible schema, apart from its uncertain eminence of being associated with cryptocurrencies, so far. The story is growing up rather beneficial and is happening sooner than expected. This intends that we are going to witness the wave of revolution in the near future.