Blockchain is becoming an attractive way to transfer and manage real estate.
A digital ledger or history of a property blockchain is able to streamline, enhance and accelerate the ownership verification process. For investors, developers or real estate investment trusts blockchain offers alternative finance models. For financial services it can create a transparent process for lenders and borrowers.
“The old way of following the money – from signature to close – can be done rapidly and securely [with blockchain]. That’s where I see the industry going in the next three to five years,” said Alex Lange, vice president of strategy and innovation for the National Association of Realtors in Chicago.
Lehigh Valley markets are “still in the beginning stages of using blockchain, and there is greater acceptance and a higher comfort level over using it,” said Graham Simmons, shareholder and co-chair of the business law group at Norris McLaughlin P.A. in Allentown.
“The idea behind the tech is to create the most accurate and secure record of these transactions. In theory, it would reduce the potential for fraud,” Simmons said.
Ownership rights and transaction histories are established by rules governing blockchain “so there is regulatory compliance,” he said.
