Smart Contracts in Real Estate Industry
Blockchain technology is slowly but surely taking over the business world we have known for the past decades.
The rise of the cryptocurrencies has paved a new way for companies to conduct their financial transactions, thus simplifying the most basic day-to-day activities.
The innovative concept of the Under is confidently reaching the masses and is steadily transforming every area of life, including the troubled real estate sector.
Lack of transparency combined with the data redundancy in the rental agreements’ procedures calls for quick changes.
Bearing in mind that companies are dealing with contracts on a daily basis, the appearance of the “Smart Contract” concept was indeed a long-awaited breakthrough.
Interestingly enough, the actual idea of the digital contract was conceived over 20 years ago by computer scientist Nick Szabo.
According to him, “The industry needs smart contracts. In a real estate office, many people have disagreements because of informal oral agreements that are subject to people’s sometimes-selective memory. However, if their wallet is in the smart contract tied to the deal, it is fixed and immutable. You’re either in, or you’re not. The trust is automated.”
Industry players, having realized the potential of the blockchain-based contracts in the real estate dealings, have recently brought the topic up for discussion anew.
In essence, a smart contract is a legal digital agreement whose clauses are executed automatically without the interference of a third party.
Its terms and conditions are completely transparent, thanks to the decentralized blockchain technology.
Additionally, smart contracts enable the tokenization of a property, thus giving value to the token corresponding to the respective asset.
The opportunity to automate rental agreements and contract verifications gives smart contracts a significant advantage over its physical alternative.
With the help of this innovative technology, several tasks can be accomplished:
- Signing a rent agreement: The time-consuming process of approving and verifying the rent agreement is cut down into two simple online steps. Bank and real estate fees avoided due to the two-party system.
- Paying rent: A clear and rigorous schedule backed up by the secure blockchain technology is used to pay the rent.
- Setting up a security deposit: In accordance with the deposit clauses stated in the contract, damage charges can be accessed the end of the lease.
- Hosting an open house: Smart Lock Technology allows the tenant to visit the landlord’s property by plugging his smartphone into the lock to open the door.
Major solutions offered by the smart contracts are too appealing not to be implemented as soon as possible.
With the continuous evolvement of the automation processes, Blockchain App Factory aims to help you in building your own version of a smart contract.
We will ensure that your transition from the traditional to the digital contract mode is effortless and efficient at the same time.
The application of this blockchain-based autonomous system to your company will benefit every area of the business consequently proving to bring more profits.