ADVERTISEMENT

Admin's Picks

ADVERTISEMENT
ADVERTISEMENT
Host Sonu
ADVERTISEMENT

Accelerate Real Estate Digitization with Blockchain Smart Contract Development

The onset of digital disruption has made Real Estate trading predominantly stressful. Realtors that hold onto traditional trading practices and platforms are unable to drive transformation at scale. The fragmented operations, tedious paperwork, as well as hidden costs, make the traditional approach highly detrimental for both sellers and buyers. Hence, building and deploying decentralized applications is gaining traction among realtors.

Application development with Blockchain offers an immense potential for realtors to drive digitization. With Blockchain development, realtors can tap into the power of Smart Contracts. Smart Contract-powered Real Estate applications not just help in automating transactions but also improve asset decentralization and transparency. Moreover, these solutions can be the right weapon to offset the prevalent challenges.

Challenges in Traditional Real Estate Trading

  • Humongous Paperwork – Though centralized Real Estate trading involves using portals and platforms, the buyers must undergo time-intensive paperwork for each transaction. This results in delays and failure to close the deals on time for realtors.
  • Higher Fraud Risk – In the traditional approach, most of the property agreements are in paper form and they are entrusted to humans. This increases the level of risks like tampering and revenue mismanagement.
  • Poor Transaction Speed – In traditional Real Estate portals, the processes are manually organized by various intermediaries. Due to the involvement of multiple middlemen, both buyers and sellers suffer from slow transaction speed.
  • Expensive Trading – The involvement of several intermediaries (human brokers and attorneys) adds up to higher Real Estate transaction costs, thereby making property trading highly expensive.

Opting for Blockchain Smart Contracts development is a strategic approach to overcome these challenges. With Smart Contracts-backed applications, realtors can make use of decentralized ledgers for showcasing and trading properties in real-time. These ledgers minimize the need for human mediators and improve transaction speed and efficiency.

Four Applications of Smart Contract Development in Real Estate

1. Property Data Access

At present, each buyer or seller interested in Real Estate trading uses MLS (Multiple Listing Services) to acquire essential property data. These listing services demand higher accessibility costs, while the quality of property data they offer is unreliable. As an alternative, realtors can standardize the practice of property data accessibility with Smart Contract application development.

Using Blockchain Smart Contract applications enables realtors to share property data among a P2P (Peer-to-Peer) network. This network offers better transparency of the data and enables Real Estate participants to bypass the MLS fees. Also, listing the property data in this network enables realtors to eliminate tampering activities and maintain information integrity.

2. Due Diligence

Before buying or renting properties, buyers and sellers spend a lot of time on diligence activities. Typically, due diligence includes an extensive evaluation of documents like proof of possession, title deeds, re-enter lists, and repair proofs. Since this data is kept in paper form; any intermediary can easily alter the information.

To make this data invulnerable to human factors, realtors should consider investing in Smart Contract application development. This way, Real Estate property documents can be stored and maintained digitally in Blockchain-based platforms. Moreover, Smart Contracts enable every Real Estate participant to automate the paperwork and eliminate the possibility of inaccuracies and manual errors.

3. Deed Management

Another key Real Estate process that is highly vulnerable to errors and fraud is property deed management. Traditional deed management involves a range of participants like renters, lawyers, and brokers. Hence, buyers/sellers need to undergo redundant paperwork and pay additional fees to perform a deed transaction. Consequently, this approach makes the process of accounting and money trace management challenging for realtors.

These issues can be offloaded by deploying Smart Contract-powered Real Estate applications. This application enables buyers, sellers, and realty agencies to completely utilize the potential of deed automation. The application performs the following actions automatically during a deed transaction:

  • Alerting every liable participant of a property to sign the smart rental contract
  • Initiating tenancy payments automatically to the landlord or other investors
  • Disbursing the guarantee fee at the end of the tenancy period

All these actions simplify the process of property transfer and money trace inspection easier for Real Estate agencies. Developers from a recognized Smart Contract development services provider can write app logic to automate deed transactions with greater precision.

4. Fractional Trading

Smart Contract-backed Real Estate applications enable agencies to modernize the trading process. Realtors can introduce the process of tokenization and fractional ownership to their clientele. The digital tokens are generated by Smart Contracts when relators upload the property details in the Blockchain applications. These tokens make ownership sharing easier for investors. Hence, multiple individuals or investors can collectively own a property without any financial or geographical barriers.

Fractional trading enables buyers and sellers to access high-value properties and boost investment returns. From a business perspective, fractional trading enables realtors to acquire and trade assets across different regions. This helps in diversifying their business portfolio and driving competitiveness.

Real Estate App Development with Smart Contracts – Key Productivity Gains

Improved Security & Transparency

By offering an immutable and automated way for property transactions, Smart Contracts-supported Real Estate apps reduce the possibility of fraudulent activities. The app enables realtors and users to store their property records across several nodes, thanks to Blockchain’s decentralized architecture. This offers an additional layer of security for Real Estate apps and protects them against hacking and malicious activities.

Automated Processes

By hiring developers from a reputable Smart Contract development company, realtors can build apps that automate processes like payments, leasing agreements, and property transfers. This approach reduces paperwork, and error, and accelerates transaction times. Smart Contracts execute transactions only when defined conditions are met. Hence, these apps don’t compromise the performance of processes and improve the reliability of Real Estate transactions.

Higher Asset Tokenization

Building and deploying Smart Contract applications enable realty agencies to turn tangible properties into easily tradable tokens. This innovative approach standardizes Real Estate investment and revolutionizes the buying and selling processes. The tokenization of Real Estate assets using Blockchain Smart Contract solutions also helps in improving liquidity and promoting fractional ownership.

Global Accessibility

Real Estate apps backed by Smart Contracts pave the way for cross-border transactions without any middleman intrusions. The decentralized infrastructure guarantees that both end-users and realty firms can evade hindrances like currency translations, time zone variances, and different legal rules. Moreover, Blockchain’s support for greater accessibility encourages realtors to participate in the global trading domain and diversify their business across various geographical areas.

Summing Up

Smart Contracts in Real Estate offer an advanced level of security, transparency, and simplification. Now it’s the ideal time for Real Estate firms to create and launch exclusive apps by collaborating with an experienced Blockchain development team. Dedicated Blockchain developers can help realtors build apps and acquire higher returns on investment.

ADVERTISEMENT

CHECK OUT OUR LATEST

ARTICLES
Scroll to Top