Blockchain Could Change Real Estate Forever.
26 Jul 2019
Buying property has always been just that little bit out of reach for me as it most likely has been for most people in the current economy, and when one cannot own, then one rents.
Having rented most of my life I bounce around depending on what’s closest to work, I have recently settled in a suburb that would be classed as rural like most of the surrounding homes reside on acreage. Having never really spent much time around this type of area I had no idea there were certain rules and regulations regarding real estate with most local councils, that was until someone had placed a flyer in my letterbox alerting me to the upcoming subdivide and sale of smaller lots.
My first thought was that the sale didn’t really affect me so I had no cause for concern, I was renting and had no real investment in the area but as I read through the flyer more, it stated that the suburb had an original neighborhood plan and within it exactly where the subdivide was being built there was meant to be a 100m stretch of land, for wildlife, flood prevention and many other reasons why the original neighborhood plan had been put in place.
While I read, I felt the residence concern and more importantly I knew this person had most likely been living here for many years only to have their uniquely rural neighborhood subdivided and sold to the highest bidder, introducing a whole different dynamic to the neighborhood.
Real estate is not a subject at school and therefore most of us really have no idea what our rights are within our suburb or even while attempting to buy a new home. As mentioned in this article
25% of title deeds being processed have defects such as fraud, omissions, and other errors, this is why title insurance is always recommended, for fear you could very well lose everything if you aren’t careful.
So how is it possible that this is still an issue in this day and age with technology the way it is?
Neighbourhood plans, title history, purchase history, rental history, all of it is still being stored in archaic ways preventing any of us from accessing anything without going through a lot of paperwork to get it. Most of the time any house purchase would involve a lot of third party individuals fielding said paperwork which as many would know astronomically increases costs within the sale.
Trying to own land, large or small in this economy is hard enough without having to jump through all the expensive and ineffective red tape to get it, so why is business still being done like this when there are easier, safer ways to go about navigating the turbulent waters of real estate?
While the technology is out there, and there is a large call for its use, it could be that the platform has just not yet been created. While the smart contracts start to filter through completely eliminating third party members, there are still a lot of uses out there for this kind of technology making it a lot easier for average people like us, to invest in house and land without the risk of buying fraudulent titles and one of those ways is QR code technology.
VeriDoc Global has already made strides within the market to eliminate fraud within real estate, their technology involves embedding a QR code on an item with a unique digital hash inside the QR code. The hash holds a string of information that is then placed on the blockchain network for security, verification, and more importantly end-user validation. As seen here.
By using a QR code reading app on any smartphone, customers can scan the QR code on the document, and receive the necessary information and in this case make absolutely certain you are looking at an authentic land title or property agreement. It can also add time and location stamps along with any additional information like sales history and original house plans. Try it for yourself with the image above and scan the QR code with any QR reader.
The possibilities could be endless with the capabilities of blockchain technology, that is at this stage is grossly underused.
While Land titles are a start, buying a house is still hugely complicated and still needs a lot of third party involvement. The call to introduce Blockchain and QR code technology could grow beyond anyone and into something much more.
Wouldn’t it be easier if there was an app that I could access, with the prospective house for purchase and scan the houses QR code?
With this simple act, I could see when it was built, when it was available, the land title, the agent or owner, pest inspections, along with your property management agreement and any additional information that needed to be added, all secured on the blockchain.
Information is power and the everyday person needs more of it and with this finished technology, entering into the buyers market might just be a little bit cheaper and a lot less daunting.