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The real estate industry is known for its reluctance to change and adopt new technologies. But as blockchain technology finds new applications, it’s evolving the real estate industry whether entrenched players are ready for it or not.
While blockchain technology has introduced concepts such as NFT-minted property rights and blockchain-based title searches, the most radical development offered by blockchain might be in its potential to transform real estate contracts.
Tracking and Managing Contracts with Blockchain
The real estate industry is clogged with contracts, starting long before anyone agrees to purchase a property. It’s a necessary pain point in a complex industry with high financial stakes, but it’s a process that blockchain can both streamline and make more transparent.
Real estate technology platform Nobul is already pioneering the use of blockchain in the world of real estate contracts. Nobul is a digital marketplace that empowers home buyers and sellers in their search for a real estate agent. It aims to make real estate agents’ fees and transaction histories transparent, giving buyers and sellers a competitive edge when it comes to finding an agent.
But Nobul has gone beyond simply matching buyers and sellers with agents, finding innovative ways to streamline the relationship between the two by integrating blockchain technology into its platform.
Nobul has added a blockchain component that has made tracking and managing contracts more transparent, bringing more accountability and clarity to an opaque industry. It was designed to record and manage key transactions in the relationship between the real estate agent and buyer or seller: Listing Agreements, Buyer Representation Agreements, Broker-to-Broker Referrals, and any other standard-form real estate contracts that apply based on the state or province where the transaction takes place.
“At Nobul, we plan to make the entire real estate journey for home buyers, sellers, and their agents as simple and easy as possible, and we believe that blockchain is part of the solution. Blockchain will not only help users through the arduous contract process but will also give them a sense of comfort knowing that their contracts are safe and secure, and most importantly, a sense of trust that Nobul’s platform will provide a level of transparency and auditability that is missing in the industry today.”
Smart Contracts and Automation
The next step in blockchain is event-based smart contracts that can automate more of the complex contract process that comes with the real estate industry. Secondary agreements, waivers, schedules, conditions, and other processes that come with real estate transactions could be automated with smart contracts, reducing the possibility of disputes and making the closing process faster and easier for all parties.
Blockchain technology has arrived in the real estate industry. In a business that is dominated by contracts and opaque transactions, blockchain has the potential to change the way contracts and transactions are managed and recorded, streamlining the process, reducing costs, and removing avenues for fraud.