Real estate sector is one of the pillars of any country’s economy. The 2008 collapse was also due to property frauds and bank frauds only. But now the economy is stabilizing with cautious and relying on technology more. One of that technology which is being implemented on the real estate market is blockchain technology. The first implementation can start from the registry of property but it is the responsibility of state’s government so let us understand how a business person can implement blockchain in real estate market and can be part of the next technology revolution.
Smart Contract Development For Real Estate
One of the implementations of blockchain technology can be smart contract development or chaincodes (Hyperledger) development to rent out properties. Mainly, there are three ways to rent a property to different types of clients. These clients can be residents looking for house or apartment on rent, businesspeople to lease a shop or any other commercial property and travelers looking for shared homes or lodge services. How smart contracts for real estate can be implemented through followings:
- Commercial Lease
The owner of the commercial property and the lessee needs more than just a third party. There are brokers, reliable people to build a trust factor. But with Ethereum based smart contracts can eliminate the need of trust between owner and lessee. For example, if the information of properties is maintained in a private blockchain, the data will be immutable, and there will be minimum requirements for physical verification of property and due diligence. Moreover, a layer of smart contract over blockchain will ensure the coded terms are executed on time.
- Apartment Rentals
The owner of an apartment or house who is willing to rent his/her property can form a smart contract without any legal entity or broker acting as a third-party. The Ethereum based smart contract development ensure successful transactions between owner and rentals. Smart contracts are self-executing digital contracts and of which terms and conditions can be set by one or involving parties. When the terms of smart contracts have executed, the owner and tenants can exchange physical keys to the property, and the same can be continued over the years. The lease terms stay immutable forever on the blockchain. So any disagreement or dispute are avoided. Moreover, The United States and other major countries are slowly accepting blockchain technology in various sectors which will increase the transparency of the real estate market as well.
- Lodging Service
Airbnb is one of the best business models for the tourism sector. It simply connected possible property owner willing to rent out their ideal property as a shared home or shared lodge to travelers at a low price. Now if the hyperledger fabric (Type of blockchain development) is applied with a similar business model, it can bring more transparency in transactions done between owners and travelers, in property details, owner details, and others.
We hope you have found this article informative and interesting. For more information or queries visit at ICO Development and know more about this technology. You can also contact us or send us an email at sales@icodevelopment.io.