Real Estate Investor Magazine South Africa September 2018 | Page 18

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TECHNOLOGY
action is predominantly offline and highly labor intensive , with documents surrounding proof of identity for the history of property ownership , tenants and modifications . A blockchain solution for digital identities and title registers enables a streamlined and secure due diligence process for buyers or lenders on the properties they are purchasing , eliminating elements of human error and fraud . This would also open up opportunities in countries with no mandatory land register and / or field book as sensitive information secured on the blockchain contributes to the credibility and authentication of information .
Rental Agreements
Smart contracts ( sitting on the blockchain ) can be used to create smart tenancy agreements . This enables details of the contract such as rent value , payment terms , and information around the state of the property to be agreed and signed digitally between landlord and tenant . Following this , the payment of the lease and the eventual return of a security deposit and payments to external agreed contractors can all be initiated automatically via the smart contract once agreed upon criteria is met . Once again meaning a more efficient , auditable and legally enforceable process .
Game Changer
In the past , we have seen the Real Estate Industry fall behind the adoption curve , but blockchain offers brokerages an opportunity to pivot and be part of a digital and decentralized revolution where property exchange finally transforms into a self-sustaining entity .
Smart contracts will allow brokers , owners , and investment funds to maximize profits by speeding up processes and keeping intermediaries out of the ROI equation . Liberating buyers and sellers from third-party services free up funds to spend on higher-end property or more comprehensive agent services .
When profit filtrates through such an intricate system , as it does in real estate , there is always a loss . In simplifying the system with smart contracts and blockchain technology , real estate will profit in ways it never has before .

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16 SEPTEMBER / OCTOBER 2018 SA Real Estate Investor Magazine