Real Estate Informatics
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Real Estate Blockchain Informatics
Hello [[data:first_name:”dear subscriber”]],
Welcome to this new edition of iPROPRIETOR. Today we are looking at real estate on the blockchain. Specifically at the challenges and opportunities afforded by this new technology which is leaving its nascent stage. Enjoy the read.
- VIDEO of Smart Contract Creation March 2, 2019
- Protected: ReMAX Property on Blockchain March 2, 2019
- Example of Digitized Realty Transaction March 2, 2019
- Protected: DIGITIZING PROPERTY TITLES March 2, 2019
- Realty Sales and Purchases via ICO March 1, 2019
BREAKING THROUGH LEGAL and POLITICAL OBSTACLES TO BLOCKCHAIN REALTY
The integration of blockchain has attracted (paywall) virtually every industry. This new technology offers the ability to see real-time cryptocurrency transactions in a digital ledger that is managed by the network. The benefits of blockchain are vast as it gives consumers a look at information that is accurate, easily verifiable and public, according to Blockgeeks.
With blockchain having multiple advantages, its integration into the real estate market may seem like a natural next step, but on all accounts it has been almost entirely halted, causing many to wonder if and when the technology will be fully incorporated.
Seven members of Forbes Real Estate Council share what they think are the biggest roadblocks to bringing blockchain to the real estate industry and what industry professionals can do to help push it forward. Here is what they had to say:
Real estate professionals weigh in on blockchain. ALL PHOTOS COURTESY OF FORBES COUNCILS MEMBERS.
1. Issues With Escrow Services And Title Registration
Two natural areas where blockchain can add value relate to escrow services and title registration. Roadblocks include potential litigation related to escrows, and the entrenched industry incumbents for title services. In both of these areas, some combination of advocacy groups along with government intervention could make progress. – Larry Solomon, TheGuarantors
2. Finding The Right Application
The biggest challenge in the industry will be finding the right application of blockchain, as opposed to force-fitting it into various scenarios. We have a tendency to get overzealous about applying tech, but we need to focus on being proficient users of the best software, not just the coolest. Understanding blockchain will be one of many things in the real estate tool belt that will make a huge difference. – Michael Sroka, Dealpath, Inc.
3. Known Unknowns
I believe that people have not yet begun to fully understand, or to trust, what cryptocurrency is, let alone try to understand what the blockchain is, and how it can help the real estate industry. Education is the biggest roadblock. There must be understanding and trust before this technology can be fully utilized. Whether that education comes by choice or by force is the real question. – Mark Bloom, NetWorth Realty
4. Negative Perception And Dinosaur Thinking
The two biggest hurdles that I see in bringing blockchain to real estate is shedding the negative perception on cryptocurrency and overcoming the dinosaurs in the real estate industry who don’t want change, even though it brings more transparency and ease to real estate investing. My prediction is this style of investing is going to be the biggest game changer the real estate market has ever seen. – Chris Ryan, Luxury Lifestyles Group / RE/MAX Crest Realty Westside
5. Vested Interests
The same roadblock that exists now to open source central data repositories.: vested interests, equally affecting brokerages and multiple listing services. Such a movement would have to come from outside the industry, i.e. government lead. – Colin Bogar, Property Passbook
Real estate is a relationship-driven business involving typically the largest, most emotionally driven, legally complex and potentially riskiest transaction in the average consumer’s life: It requires intermediaries. That’s a huge impediment to blockchain and why it’s not going to totally disrupt real estate. It can improve parts of the industry, but right now the movement is overselling itself. – Kevin Hawkins, WAV Group, Inc.Forbes Real Estate Council is an invitation-only community for executives in the real estate industry. Do I qualify?
7. Too Many Regulations
There are just too many regulations from a banking standpoint, along with the title companies and closing attorneys. It will take many years before these folks can wrap their mind around cryptocurrency and blockchain as being the future. Real estate leaders just need to stay persistent and lobby changes within the existing old-fashioned, stereotypical way of conducting real estate transactions. – Engelo Rumora, List’n Sell Realty
Blockchain technology: the next big thing in commercial real estate
Blockchain technology has recently been adopted and adapted for use by the commercial real estate (CRE) industry. CRE executives are finding that blockchain-based smart contracts can play a much larger role in their industry. Blockchain technology can potentially transform core CRE operations such as property transactions like purchase, sale, financing, leasing, and management transactions.
Download our report ” Blockchain in commercial real estate” to learn more.
XYO Network to Help RE/MAX México Adopt Blockchain for Real Estate Market
Blockchain-oriented firm XYO Network recently partnered with RE/MAX México to leverage distributed ledger technology (DLT), an umbrella term that also touches upon blockchain, for real estate management processes. RE/MAX México, a leading real estate brand in Mexico, intends to use the technology for record-keeping. The company hopes that it would streamline its business processes by putting the transaction data on a blockchain, thus securing title deed issuance and property management.
RE/MAX México will work with XYO Network to develop a title registry based on blockchain. The system would improve the sophisticated relationships between all the parties, including property buyers, sellers, brokers, notaries, and agents. The agreements will rely on smart contracts, which are blockchain-based contracts that eliminate the need for intermediaries and can automate transactions and deals.
XYO will contribute with its DLT technology, geolocation data, and Oracle network, which supports the development of location-based smart contracts.
RE/MAX México COO Sergio Felgueres commented:
“In real estate, it goes without saying that location is everything, and we see location coupled with the latest blockchain technology as major areas of opportunity for our entire industry.”
“The use cases and possibilities in our initial discussions with XYO were intriguing, and we very much look forward to building out the deployment and deepening our relationship with the company.”
XYO Network co-founder Markus Levin noted:
“As more smart, forward-looking service organizations like RE/MAX México incorporate location verification and the blockchain into standard business processes, we’ll see increased efficiencies and seamless transactions, where both sellers and buyers realize process improvements and broader benefits.”
RE/MAX México currently has over 2,000 agents in Mexico, who work in its more than 120 offices. For the past 20 years, the company has helped clients buy, sell, and rent properties, such as houses, apartments, and offices among others.
Real estate is one of the greatest beneficiaries of innovative technologies like blockchain. Last week, blockchain-based real estate platform operated Propy said that it had used the technology to handle the first real estate sale in the European Union.
Video: How To Create A Smart Contract in Real Estate
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