Blockchain applications in real estate transactions

This article was written and published in Spanish and has been translated into English via Google Translate. Click here to read the original article.

When we talk about buying and blockchain we accept that the real estate industry is undergoing an unprecedented digital transformation.

In this sense, blockchain technology could have an important effect in the real estate industry, from the purchase of properties, to the administration of titles.

Next, we will try to identify that potential impact and why blockchain technology could benefit the real estate industry. This technology offers you a way to keep shared records very difficult to manipulate. Thus, it operates through decentralized platforms on an equal footing, creating resilience against the propagation of damaged information and increasing resistance to fraud.

Broadly speaking, it has the potential to address many challenges within the real estate industry, including:

• Improved trust and transparency: offers you a verifiable and absolutely secure option.
• Reduction of databases in silos: real estate processes would benefit from shared databases that are safe and resistant to manipulation.
• More efficient transaction processes: most real estate transactions are still made through bank transfers and require expensive verification processes that can take days to complete. Blockchain-based transactions provide you with an optimized, fast and economical process.
• Less intermediaries: this solution would reduce the number of agents involved since the records can be stored, verified and transferred using blockchain technology. This means saving time, effort and money.

What areas of the real estate sector can be transformed? There are several areas that could benefit from the use of this solution.

In property searches

Currently, it is usual to resort to third party platforms that are usually based on subscriptions (after payment). In addition, communication is often inefficient. Blockchain technology can solve these problems by allowing a list of properties in a single decentralized database. With the data distributed through a peer-to-peer network, the control would be much more efficient and at a lower cost.

In real estate transactions

Real estate transactions usually generate a large number of procedures and procedures. This manual verification process increases the likelihood of errors and may involve multiple third-party service providers. These factors can be expensive and delay the process.

By using digital identities in the block chain, this entire process can be done online and safely, which increases efficiency, reduces costs, improves data security and reduces the possibility of manual errors.

When applying for new mortgages

Requesting new mortgages involves extensive documentation and the participation of several intermediaries. The process could be simplified and made more transparent through the technology we are talking about.

For example, the verifiable digital identities of the properties could allow a reduction in both due diligence and loan documentation time, thereby accelerating the mortgage approval process.

In short, the buying and blockchain processes will end up being consolidated as that tandem that claims the current digital context. We are convinced of this, and you?

This article was written and published in Spanish and has been translated into English via Google Translate. Click here to read the original article.

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