Nowadays, owning a home is on everyone’s bucket list. But, the transparency of real estate buying and selling related transactions is still questionable. Moreover, the presence of middlemen in different phases of a real estate dealing process like lawyers, escrow companies, brokers and several others are making every transaction expensive. The use of advanced technology can be found in almost all types of industries to gear up the process and let the customers feel more secure. Real estate industry is also not an exception here and if the sources are to be believed then this industry is all set to adopt the Blockchain technology to remove the middlemen in between from a property dealing process.
Many of the renowned builders of apt flats in Noida, Delhi, Gurgaon, Mumbai, and Kolkata are expanding their know-how(s) about Blockchain and its impact on real estate.
The blockchain is here to change the way of making real estate transactions. Just like one shop for a product online, buying a property may also become a matter of just clicking on an “Add to Cart” button on a website in the near future. It has been said that with the help of blockchain technology and talented tech developers, a new type of contract is under development which is quite smart in nature. This smart contract will enable the buyer to submit and generate property records such as factum, escrows, real estate contracts, and other legal documents. After completing the legal procedures, the money will be distributed through a secure payment system in the form of cryptocurrency without the need of any attorneys or title companies.
Blockchain will make sure that the property buyer gets the factum and the property seller gets the cash in cryptocurrencies, all online directly, without any middlemen involved. The blockchain will also be capable of keeping the data in the applicable public records.
Among other cities, the craze for blockchain technology-powered real estate dealing process is being raised high in Noida. Some builders there have already started educating their existing buyers about smart transaction through blockchain technology for their upcoming projects in Noida extension.
Well, we have discussed a lot about the possibilities of Blockchain Technology and its excitement among people. Now, let’s have a look on some of its advantages in detail.
Blockchain as a Process Accelerator
So how does blockchain accelerate the overall process?
Short answer: By cutting out the middlemen.
And now the long one,
While buying or selling a property, both the parties, i.e. the buyer and the seller do not hold all of the information to process the transaction completely. And there comes the role of the middlemen who provide the license to access the documents.
Presently, property dealings are being done by handling a piece of paper in exchange for the particular property cost. So, it can be seen that the property is nothing more than a piece of paper. While transferring a property, one needs to customize it according to the deal, get it signed by both of the parties, getting an appropriate rubber stamp on it, and send it to the nearest government office for legal inclusion into the database. This process takes a lot of time and unpredictable expenses.
The above process can be fastened up by using an ethereum platform-based digital property title. This platform is able to generate a secure cryptographical token that can be effortlessly transferred. The process is not just effortless but it’s also far quick and cheap. The option of verifying the property yourself eliminates the expenses of involving the middlemen.
The sellers and sometimes the buyers also take the help of escrow companies to authenticate the third party verification and reducing the chances of fraud. These companies usually charge a percentage of the property as their commission. But using blockchain, the authenticity of the verifications can be easily figured out with the help of blockchain decentralized database.
Blockchain as a Fraud Inspector
In the world of digitalization, document forgery is a major problem. Many times it has been witnessed in real estate Industry that a dishonest person is making a fraudulent property transaction by fake the ownership of someone else’s property to a buyer. They are able to do this using some editing software available online. Also, faking the property stamps is next to nothing with the help of technology.
For the same reason, many real estate startups are looking for replacing the old school paper proof with the new age digital proof by using blockchain. In this case, what blockchain actually does is. It creates a decentralized network where you can upload the title documentation which will be recorded and verified by the other users of the network. This reduces the scopes of forgery and verifies the ownership cent times better than the normal verification process. Blockchain keeps the proofs of property existence, ownership, exchange, and transaction.
Blockchain as a Transparency Enabler
Instant property buying is a very rare case in the real estate industry. Most of the property dealings go through mortgages and loans. This makes the process very slow and hectic due to the involvement of several administrative tasks. This process can become much faster and simpler with the use of smart contracts powered by the blockchain technology. By using this technology, a digital user ID can be created for a real estate asset by a seller or a buyer. This will eliminate the traditional approach of transferring the property ownership and the process will become more transparent.
The power of the blockchain technology is unprecedented. It can safely streamline the process of buying or selling a property and taking up mortgages or loans. But it’s not as easy as one may think to adopt this technology. You need to hire a blockchain expert who has proven expertise in creating, developing, and maintaining an ethereum platform for transaction purposes to make this technology works for you.
Indian real estate sector is slowly but steadily underway to adopt this technology while the change can’t be expected to happen overnight. As we all know, great things take time to happen.