With the rise of cryptocurrencies being one of the biggest stories of the 2017, it has been hard to ignore the buzz around the new technology. The potential of cryptocurrencies to revolutionize the way we pay by making it not only quicker but also more secure is an idea that many have gravitated towards.
The security and speed of these cryptocurrencies is derived from the blockchain and smart contract technology that powers their back ends. Through a decentralized ledger, these technologies are able to quickly and securely streamline all different kinds of processes.
While cryptocurrencies take advantage of blockchain systems for their security and speed in value transactions, the applications of the technology reach far beyond replacement means of trade. Blockchain technology has applications in nearly every industry as its decentralized ledger format is customizable from the ground up.
An exciting new startup called SMARTRealty is bringing the innovation to the real estate market, using Blockchain and smart contracts to simplify the market for both landlords and those interested in purchasing real estate.
Both buyers and sellers in the real estate market face a variety of challenges when trying to complete transactions. One of the most common of these roadblocks that is faced by both parties is the complicated contracts and agreements that are involved in real estate transactions. In many cases, neither party entirely understands the documents they are signing.
This makes enforcing rent and eviction time consuming and complicated for landlords while also making it difficult for tenants to collect their security deposits and enforce elements of the agreement where the landlord is to make repairs.
SMARTRealty’s solution to the problem of enforcement lies in the smart contract system that works in tandem with decentralized ledgers to speed up secure transactions in the Blockchain network. These contracts contain elements that allow them essentially enforce themselves, making for a clean and quick network.
In the world of realty, these contracts allow for both landlords and tenants to easily collect on their payments and enforce agreements without having to deal with pages of incomprehensible jargon.
Smart contracts allow for rent to collect itself, and in turn allows landlords to know immediately when their tenant is having a problem. Security deposits will also no longer be lost without explanation as these smart contracts are able to automatically return the unspent deposit to the tenant upon completion of the agreement period.
While legal counsel can prove invaluable in real estate purchasing situations and renegotiations, many people chose to forgo the extra time and cost in order to simplify the process of financing a purchase of and purchasing a property. Discrepancies in what parties agree to are the source of court battles every day. Even those agreements negotiated with the assistance of an attorney or third party expert can be the source of fights that can cost both parties significant amounts of time and money.
Financing agreements and mortgages prove to be, for many in the real estate market, some of the most difficult to understand agreements and are often the source of costly legal battles. Relationships can throw further complicate the problem as one party will have to fight multiple times in a financially and emotionally taxing court.
SMARTRealty again sees the solution to these problems in smart contracts. By design these contracts must be executable, making them easy to follow for all participants in the agreement.
Smart contracts’ ability of always being able to execute themselves gives them a large advantage over traditional agreements in the real estate world. Complex wording and grammar in traditional contracts that are the cause for debate in traditional contracts are not present in smart contracts.
Smart contracts provide a set of conditions that must be met for the agreement to stand as well as the consequences of breaking the agreement that is clear to both parties.
These contracts are processed through the Blockchain with receipts that are able to keep track of all transactions occurring in the system. SMARTRealty’s platform will in turn be able to allow for not only simple and easy to understand agreements but also for unmatched tracking of the progress on those agreements, whether they be refinancing payments or landlord repairs.
As blockchain continues to spread across a variety of industries, it is important for analysts of all sorts to keep their eyes on what the technology can bring. With all of the benefits of smart contracts and decentralized ledgers, it was only a matter of time before the tech made its way to the real estate industry.
SMARTRealty is an exciting startup that has taken the complicated world of real estate agreements formatted them as smart contracts. These self-executable agreements allow for all parties in real estate transactions to be sure they are participating in a secure and enforceable agreement. As millennials begin to enter the real estate market searching for agreements they can understand, SMARTRealty will definitely be a company to watch out for in the coming years.