Advances in blockchain innovation mean that the real estate sector no longer needs to rely on dusty documents and traditional sales processes, because property titles, insurance, ownership transfer and escrow processes are all moving onto the blockchain. While buying a property will not be as quick and easy as buying a book from Amazon, for now at least, the world of real estate from home buying to property investment is about to be transformed.
Why change traditional house buying?
An EY report published earlier this year pointed out that residential real estate markets with their agents, brokers, attorneys, mortgage lenders, appraisers, title companies and more, form an expensive, time-consuming web. Current due diligence processes, looking into property titles, for example, can take weeks and, in some cases, months.
The constraints of the traditional real estate processes often include mistakes in land registry records, disjointed and inefficient systems of tracking within the sales process, lack of transparency, high and sometimes unnecessary fees, and even fraud. For both home buyers and property investors, money is wasted, and profits squeezed. Sometimes at the end of it all the sale falls through.
The current systems are operating at almost curmudgeonly levels, so it is not surprising that this industry is ripe for change.
Blockchain, the irresistible force
Enter blockchain. Blockchain is an encrypted electronic record of data on a distributed ledger where information is shared simultaneously and stored over a vast number of computers. The technology has the ability and flexibility to streamline business processes within the real-estate sector and much more.
One aspect with massive scope for…