How Can We Create A Real Estate Blockchain
Our company recently had a field trip to Old Republic’s downtown office. As we toured the title department, our guide informed us that Old Republic had title information dating back to the Great Mahele.
I was fascinated that Old Republic had information dating back hundreds of years ago. In our industry, having accurate information is crucial to succeeding as a real estate agent. By accurate information, I can better service the needs of my Sellers and Buyers.
One of my mentors, who is a technologist, recently shared a TEDx Talk about blockchain. In summary, a blockchain is a digital ledger. A blockchain is a shared ledger that allows multiple parties to work together on one shared ledger. What does this mean for real estate?
When one purchases a home, the Buyer receives information from multiple sources. First, the Buyer’s real estate agent will provide the Buyer with comps. These comps from the MLS.
Second, once in escrow, the Buyer will receive information from the Seller. These items might be:
Building permit package
In addition, per section J-1 of the Purchase Contract, the Buyer has the right to inspect the home. If the Buyer hires a home inspector, the home inspector would provide the Buyer with a detailed inspection report.
The third source of information comes from escrow. One of escrow’s job is to provide both Seller and Buyer with a Preliminary Title Report. Interestingly, most people overlook this document (despite it being very important). The Prelim will:
Tell you who the owner of the property is
Show you any liens and or encumbrances
Show you any mortgage information
Show you tax and tax map key information
Show you any documents that have been recorded to restrict one’s use of the property
Allow you to review any matters of affecting the property you are purchasing
Knowing that real estate is purchased backwards, having a blockchain of all this information would be extremely beneficial. Creating a ledger of all this information would allow Sellers and Buyers to make better decisions when selling and buying a home. That is, a Seller and Buyer would be able to see a complete history of the home, from the Great Mahele to present, within a moments notice. In addition, all this information would be accessed from one ledger.
Could this be the next step in the real estate industry?