Involvement of technology has changed what our lifestyle used to be. The things that took days are done in minutes now. Technology is slowly transforming every business and it is replacing traditional methods of the real estate business as well. Blockchain is another innovative technology and blockchain-based applications are taking the real estate to the new heights. A Smart contract is one of the implementations of blockchain technology. The Smart contract system is ready to disrupt the $217 trillion global worth of the real estate business and making massive improvements in property searches, decision making, streamlining cash flows and smoothing the property management processes. In this article, we are going to tell you how smart contracts in real estate transactions are modifying the traditional real estate world.
What is a Smart Contract?
Smart contracts are electronic contracts that without a doubt can be described as the digital replacement of the traditional verification of legal documents. Smart contracts are self-executing contracts that work automatically without human intervention. The terms of the agreement between desiring parties are written directly into the lines of code and verified by electronic signatures from all parties. The agreement exists on the decentralized blockchain and can only be viewed and altered by the people involved.
Smart contracts have proved themselves as a massive breakthrough for the real estate industry. Smart contracts have enabled real estate assets to be transferred digitally from one internet user to another in a way that the assets remain safe and secure and nobody can challenge their legitimacy. No matter in which part of the world you are, you can buy or sell any real estate asset and sign all the legal documents from your screens.
Benefits for the Real Estate Industry
Real Estate industry has come across many notable advantages of smart contracts in real estate transactions which have made lengthy processes a thing of the past. Smart contracts assure 100% secure and digital transactions where scams are impossible. Every transaction is automatically recorded on the blockchain in a chronological order letting you have a separate record of every activity. Blockchain’s immutability doesn’t let anyone alter or hack into anybody’s information. Smart contracts have eliminated the need for costly intermediaries to verify the transactions and have come up as a direct relationship between the buyers and sellers. You can transfer money in any part of the world without worrying about paying any extra fee to any third party. Smart contracts have enhanced the speed of every real estate process because everything is done online. Property ownership now can be transferred to the primary beneficiary in a much transparent way using smart contracts in real estate transactions in just a matter of seconds. Transactions conducted between willing parties can now be audited because of the contract execution on a decentralized platform. The auditing of transactions would help prevent any problems which might occur between the involved parties in the future.
Vairt is a crowdfunding platform for tokenization and liquidation of the real estate assets through blockchain and an all-in-one solution for property managers to efficiently manage their properties. Any transaction conducted through our platform would be verified by blockchain based smart contracts which would increase the transparency of the deals.