Over the years, the real estate industry has shifted to more modern, more efficient technology to improve processes in asset leasing, purchase and sale, and management.
Blockchain technology has been at the forefront of overhauling the age-old real estate industry. Here are three ways blockchain technology has revolutionized the sector.
Asset and Funds Management
One of the most common challenges in the real estate industry is keeping track of all transactions. This is especially true for real estate investors and firms with a significant portfolio or many stakeholders.
Blockchain technology can act as a ledger of funds flowing in and out of the system. In addition, it is transparent and auditable in real-time. It is also immutable, which means no one entity can arbitrarily change the details within the ledger.
In some cases, blockchain technology can be used to automate lease agreements, rent payments, and utility bill payments. This increases operational efficiency and allows property managers and landlords to save on costs and time.
Removing Intermediaries
For years, real estate transactions required intermediaries like brokers, lawyers, and banks. However, blockchain technology may soon cut out the intermediaries and assume functions such as listings, payments, and legal documentation. This allows the buyer and seller to save money as there will no longer be any need to pay commissions or fees charged by intermediaries.
Land and Property Registries
Land titles and property registries are still being done through paper documentation. These documents are vulnerable to loss, fraud, and mismanagement.
Blockchain replaces outdated paper deeds with digital assets that track any changes made on the ledgers. It also allows transaction and property ownership records to be easily accessible. In addition, multiple parties and organizations can facilitate market transactions, increase investor confidence, and promote economic development through a blockchain-based digital land register platform.
In Closing
The use of blockchain technology, especially in the real estate industry, is still in its early days. That being said, many expect the technology to make the market more transparent, liquid, and accessible. It is also expected to enable secure and compliant digitalization of real estate transactions and processes around real estate assets.
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