Do you know what Blockchain technology is and how it can revolutionize the real estate industry? Well, we have got you covered. This article will discuss issues related to the real estate industry and how Blockchain can transform this industry.
Table of Contents
- Issues With Real-Estate Industry
- How Blockchain can Transform Real-Estate Industry
- Concluding Lines
Issues With Real-Estate Industry
Real estate trading is unquestionably stressful due to fragmented operations, criminal activities, monotonous paperwork, and money expenses. When it comes to problems of real-estate, the possibility of fraud, tedious paperwork, a huge number of intermediaries involved, high entrance limits, and hard to obtain real property information are a few of them which cannot be overlooked.
One of the emerging technologies that can have the most significant impact on real estate is Blockchain, a distributed ledger technology. Its potential to automate entire processes, especially facilitating transactions, is one of the major reasons why Blockchain can drive a revolution in this domain.
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How Blockchain can Transform Real-Estate Industry
As we have seen, what are the pitfalls associated with the real estate sector, so now it is necessary to figure out what benefits Blockchain brings to this industry.
Blockchain has its implications in almost all sectors and is radically improvising the real-estate domain by recording all information in an immutable manner, thus preventing malefactors from hacking this chain. The technology ensures that no third-party/ broker is involved in the process so that the entire process remains simple yet transparent.
Let’s explore the advantages of implementing Blockchain in the real estate industry,
Search for Available Property is Simplified
If you have ever searched for any property, you must have confronted Multiple Listing Services(MLS). Although they are helpful in various ways, such listing services are subscription-based and are made to feed to a real estate broker. They may also reflect wrong details as they are regulated by real estate brokers that can make changes according to their requirements.
With Blockchain, data is not held in the hands of real-estate brokers. Instead, data is organized, updated, and readily available on a distributed P2P ledger. The technology ensures that everybody will be able to access data for free, and it will lead to serious costs reduction.
Legal Issues are Resolved Without Involving any Third-Party
In order to buy/sell a property, one has to resolve all the legal activities, if any. For this, customers have to hire lawyers to check all the legal details, such as documents proving ownership, the record of renters, and other crucial information. The major drawback is that performed inspection is stored in a paper form that can be changed or manipulated. Also, one has to pay the extra price for inspection.
Blockchain, a distributed peer-to-peer technology, ensures that data cannot be changed, documentation is done automatically, and inaccuracies and fraud activities are eliminated without involving any third-party intermediaries.
Real-Estate Transparent Transactions
Transparency is one of the major issues in the real estate industry. Blockchain, with its decentralized nature, ensures that the entire transaction Exchange remains transparent among the participating parties. The technology ensures that data concerning the desired property is accessible to each property owner or purchaser, which helps maintain trust. Thus leveraging Blockchain for transaction exchanges can greatly reduce the chance of scams.
Managing property is a complex task because of the fact that many stakeholders are involved in the process. Most of the properties are generally managed either through manual paperwork(offline) or through multiple software programs that are difficult to integrate well with each other. Through the use of a single decentralized application that uses blockchain-backed smart contracts, the entire property management process can be managed efficiently. From signing lease agreements to handling cash flow to filing maintenance requests can be carried in a secure and transparent manner.
Well, we have covered a lot about the implications of Blockchain in real estate, and from the above discussion, it is clear that technology has the potential to deliver a new level of transparency and security, which was not possible otherwise.
What’s your take? Let us know in the comment section below.