Blockchains are commonly defined as systems that maintain an ever-growing list of records or transactions across a network of computers. These transactions could be anything such as the deposits or withdrawals you make at your bank, or the records that are created when a property is purchased, refinanced, or sold. What makes these systems different from a regular database is that the records added to this list are permanent, and easily audited by all parties involved.
While this technology can seem complicated and sometimes be difficult to understand, the basic idea behind blockchains is that they provide an independent, verifiable and trustworthy record of events or transactions.
When it comes to real estate, if you have a verifiable record of property data, it would help you a lot when dealing with other people. Even if you don't know each other, you would still be able to trust that the seller has true ownership of the property and be able to see without any question or doubt that there are no claims against the title of that property.
Having a clear record history is very important, and while this may be possible without using any technology, blockchain can help make the process more efficient and effective than what we are used to doing.
How and why was technology first used?
Bitcoin, which is the first popularized blockchain application, was first launched as a digital currency system that did not require a centralized party or bank. Bitcoin and Blockchain are terms that have mistakenly been identified as one and the same, but in fact, they are two distinct and separate components. Think of Bitcoin as an application that is using blockchain as its underlying technology, similar to how a mobile app on your phone may run on iOS or Android.
Smart contracts
Blockchains are said to have matured well beyond the single-use case of transferring value, and can now be used to verify, secure, and automate significant parts of a real estate transaction. This is possible due to smart contracts, which is one of the most important technological advancements that is enabled by blockchain.
Smart contracts do not just pertain to digital representations of existing legal contracts, but instead are snippets of computer code that can be run on top of blockchains to automatically trigger actions, or in the case of real estate, the steps in a real estate deal. The other prime use cases for smart contracts in real estate include escrow management, payments, and transfer of title.
What impacts will blockchain have on the real estate transfer process?
There are a lot of applications of Blockchain when it comes to the real estate industry.
Recording ownership of property
Blockchain has the ability to provide indisputable and instantly verifiable proof of property ownership and whether or not there are any open claims against that property.
Utilizing smart contracts
Leases, purchases, and sales agreements could be made programmable. This can open up opportunities for automated execution and enforcement of the agreements that support a real estate transaction.
Accepting rent, escrow, and purchase payments
Blockchain can help lessen settlement time to seconds instead of days while costing less in transaction fees.
Fractional ownership of property
Blockchain can allow multiple parties to own fractions of a property, which can increase accessibility by lowering the minimum amount of capital needed to get exposure to real estate, while also allowing property owners to sell partial equity, which provides liquidity.
There are various opportunities when it comes to the use of blockchain technology in real estate. However, it will likely still be years before we see blockchain enter the mainstream real estate industry due to regulatory hurdles and other concerns.
Additionally, as experts say, many of the impacts will likely never be directly impacting the consumer or agents; they will simply be a part of the underlying technology supporting the transaction.
It is important to know that while blockchain is an emerging technology, there are hundreds of companies out there today building projects with it and many are specifically working to tackle parts of the real estate transaction.
From the largest players in tech to major financial institutions, all have major initiatives around promoting the use of blockchain. It will just be a matter of time before we see some of these projects enter into the mainstream and eventually be utilized in the real estate industry.
It is clear that there are a lot of opportunities for blockchain to impact the real estate industry in the coming years. Whether it is the ability to have an independent and verifiable record of the title of each property or smart contracts that provide automated checks and balances, we know that blockchain will soon become an important part of the real estate industry.
Vista Residences is the condominium arm of the country’s largest homebuilder, Vista Land & Lifescapes, Inc. that offers ready for occupancy and pre-selling condominium projects in Manila, Makati, Mandaluyong, Quezon City, Ortigas, Baguio, Cebu, and CDO that are strategically located within major cities, in close proximity to premium universities, transit-oriented locations, and developed business districts.
At Vista Residences, unit owners can take advantage of the property’s centrality. The properties of Vista Residences are strategically located near the country’s premium universities and CBDs, making them an attractive investment for both local and foreign investors.
Vista Residences has ready for occupancy condo projects in Manila such as Vista Taft, Vista Heights, Vista GL Taft, 878 Espana, and Crown Tower University Belt. It also has pre-selling projects in the said area which include Vista Recto, Plumeria Heights, Tennyson Heights, Bradbury Heights, Sky Arts Manila, and Kizuna Heights.
Meanwhile, its ready for occupancy projects in Quezon City include Wil Tower, the Symphony Towers, Pine Crest, and Vista 309 Katipunan. It also has pre-selling condo projects in the said city such as Hawthorne Heights and Vista Pointe.
Living in Vista Residences enables you to enjoy convenience, where everything is pretty much within walking distance or a few minutes away from the property; comfort because the project features and amenities are designed to deliver comfort at all times, which makes condo living a worthy investment; security that is 24/7 and CCTV monitoring, which makes the residents safe and secure within the property.
In line with Vista Residences’ thrust to offer convenience among its residents, it also features an AllDay Convenience Store and Coffee Project in all its projects.
Vista Residences is part of Vista Land’s roster of vertical housing brands that cater to millennials and young professionals. The other vertical brands include Camella Manors, COHO, and Crown Asia.
For more information on Vista Residences, email [email protected], follow @VistaResidencesOfficial on Facebook, Twitter, Instagram, and YouTube, or call the Marketing Office at 0999 886 4262 / 0917 582 5167.
