Cryptocurrency made blockchain technology popular. However, this technology is not limited to finance. In fact, it starts to reshape other industries, including real estate.
Although this technology has been disrupting the real estate industry for quite some time now, it is less discussed. This sector is known for its long processes.
So how does blockchain reshape this sector?
Secures Transactions
With the implementation of the blockchain, conducting real estate business no longer requires trust between two parties. The reason for this is that the technology assigns a unique identity to every user through cryptography.
If a consumer financial information has to be shared with other parties, it is done so securely. Furthermore, if one party sends money to another party, the funding will not be released until the transaction is completed.
This level of security hastens the transaction process. The speed of the transaction does not depend on the location of the buyer and the seller.
Gets Rid of Middlemen
This technology enables individuals to share money and data more securely. It also eliminates the middlemen, making data more accessible. It is great for every party involved as the transaction becomes faster and more secure.
In addition to the lengthy process, the real estate transaction involves several fees. In some cases, the overall fees are higher than the overall cost of the property.
This is where blockchain becomes useful. Since there are no middlemen involved, it could reduce some of those costs.
In the cities for blockchain, various companies are creating platforms that aim to replace functions of the middlemen. Those functions include legal documentation, payments, and listings.
Because the middlemen is cut out from the equation, the sellers and buyers could maximize their money by saving on fees and commissions.
As the overall process is simplified, expect to experience less back-and-forth process.
Prevents Fraud
Every year, buyers and sellers are victimized by real estate frauds. The victims are typically those who wish to make the entire process quick. These people are the ones who want to avoid safety measures.
Modern technology makes it easier to promote any falsehood. It also enables fraud marketers to easily promote fake properties. In the real estate sector, any person can easily pose as the owner of a property. It is a significant problem that can be alleviated with blockchain.
Blockchain technology cannot be corrupted. You can create digital ownership certificates. And these certifications are not easy to replicate.
These certificates are linked to a property and the owner. That said, forged ownership documents are impossible to make.
Conclusion
Most barriers of a successful and secure real estate transaction can be mitigated or even avoided with the use of blockchain technology. As it offers means to share data securely, this technology allows real-time access to any property data directly from the source. Furthermore, it brings more opportunities for buyers and sellers to collaborate.
In other words, blockchain transforms the real estate industry by speeding up the entire process. It also aims to get rid of unnecessary intermediaries and prevent the forging of documents.
Author’s bio: My name is Jane and I have enough experience of working in real estate. I love to share my experience, knowledge, and thoughts with my colleagues and readers who are just interested in this topic.
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