Block-Chain or Block chain, a technology buzzword that proved itself to be a breakthrough in the transactions of 21st century. That’s right, Block-chain serves as a public transaction ledger of the cryptocurrency bitcoin. Well calling it a buzzword would be injustice, block-chain is still dominating the technological developed transactional areas where manual transactional records have been totally replaced by an online ledger through block-chain.
Coming down in the real estate business, in spite of having numerous guides, realtors and agencies available easily, property buyers still find it bit unsettling while going through the process of buying properties for sale. This is because of the following 2 reasons:
Mismanagement of Documents
No business can withstand without sincerity, honor, self-determination and trust. The real estate businesses require all these 4 attributes to get an unshakeable confidence in the global property market. And management plays a big role in proving a trustworthy service by any particular real estate business.
Once the client submits the documents, it must be noted that those documents are personal, private and sometimes highly confidential. A single mismanagement of documents can bring down the whole credibility of that property dealer and can also create chaos among the whole clientele. Therefore it is important to introduce a system that solves these type of problems.
Tampering refers to the intentional modification in legal documents. It’s considered as white-collar crime and the punishment is severe in different parts of the world.
In real estate business, tampering is observed as one of the most common crimes in property dealings. When the concerned people get to know about this, their trust from property market levitates. They begin to feel more insecure. They become more skeptic in future regarding .
To avoid tampering, multiple solutions have been proposed that are only possible with technology.
According to a research, the biggest city of Pakistan, Karachi, has approximately 2.3M houses. And the property market is in great flux. Commercial and residential properties for sale in Karachi are getting constructed with a greater pace. Investments are taking place in increasing order.
And in parallel, mismanagement of documents and tampering are also on peak. Rules and regulations for properties for sale in Karachi are changing but the fact is stakeholders, the people who are buyers and sellers and intermediaries, are the sole responsible.
Observing these problems in real estate market, block-chain is a one-stop solution. There are 3 basic features of block-chain that let it win the race in the real estate business.
- Decentralized System [whole system is distributed, making it the most secure transaction network in the world]
- Transparency [every activity keeps getting in record with sequence]
- Immutability [the ledger will remain unchanged because of cryptographic principles or hash table]
The real estate businesses have mismanagement of next level these days because all the process of property buying, selling and putting on rent is manual. Records are vulnerable. Confidentiality is more insecure. Privacy of personal data is no more.
Due to all these negative aspects, people with wealth tried to eat as much commercial and residential properties as possible illegally. System of filing was purely unstable. No records, none. And when the concerned people looked at the real estate market, it looked like the market is actually drowning. And eventually affecting the whole property market.
Now adapting the technological changes in the real estate sector, especially in IT, block-chain can solve multiple problems in real estate business by creating automatic systems for property verification, property transfer and ledger to record data, information, transaction and registration. All the data related to property owner and the property itself will be stored via block-chain so that no one else can claim the fake ownership. This will give rise to a new era of real estate business due to which, people who are willing to invest in properties will begin to feel more secure and safe from the past corruption and fraudulent activities in the real estate market. And also internationally, the standard of real estate business will receive a mark of appreciation and people around the world will give a positive response on this evolution in the real estate sector of Pakistan.