Real Estate News

Imagining the future of real estate blockchain

Published: 28 Apr 2017

The impact of "blockchain" technology may take over many industries, including real estate. This concept concerns the public, spread out approach to disseminating ledger updates to separate them from one individual owner. Around the world, the implications of blockchain seem to have some possible ramifications for property and title transactions.

Australian source The Conversation said that the technology first appeared in a real estate context in the Swedish Land Registry. The article itself explained that blockchains could potentially bring added risk protection with them to real estate transactions, an important feature in an age when all digital data systems see to be under outside threat.

One of the other countries where enthusiasm seems to be growing is Brazil. The company Ubiquity has introduced the blockchain model for property records within the nation, and company founder and President, Nathan Wosnack, acknowledged the benefits this can bring with it in a statement cited in Brand New Coin Magazine.

"Keeping property records -- one of the most important documents a person holds -- on the blockchain is important in developing markets such as Brazil," he said. "The blockchain allows ownership and title disputes to be handled in a fair and transparent fashion, and serves as a backup in case the original is destroyed or misplaced."

Issues with property records can be behind some of the most common reasons to obtain title insurance. When there are errors in these records or some difficulties in implementing them, the potential title holder can face challenges to their claim.

TechCrunch said that the blockchain could also help increase real estate transaction speed. It might theoretically do this by keeping objective transaction records, helping verify transactions and countering some of the extra costs and oversight forces that sometimes burden processes, the source said.