Three examples of implementation of Smart Contracts Smart contracts in Real Estate Buying

Three examples of implementation of Smart Contracts
Smart contracts in Real Estate
Buying, renting or leasing property is still a time consuming, tedious and very inefficient process. These processes are largely paper based and still in the hands of real estate agents, banks, lawyers and the registration at a deeds office. This can lead to false listings, rental scams and other fraudulent transactions. To address these inefficiencies, Smart contracts can be used to address, assist and bridge all these entities and persons involved in the process.

Current process when renting a property
• Choose an agent
• Search for rental property that you like or interested in
• View properties available for rental
• Ensure credit score is sufficient to qualify for rental agreement
• Search for rental property that you like or interested in
• Negotiate terms of rental agreement
Smart contracts can address some of the requirements listed above
• Rental property searches through the Blockchain can be done using a Multi Listing System – The MLS (Multi Listing Service) enables potentials lessees to view properties based on their requirements.
• Blockchain digital identities of assets and individuals can be used to conduct a background check on the lessee
• Terms and conditions of the agreement can be recorded on the blockchain i.e. a Smart contract is created
• The Smart contract can initiate payment of the security deposit via a bank account
• Transaction is agreed upon by both parties and is officially recorded
• When lease/rental agreement has completed it term the Smart contract can initiate the transfer of the security deposit to the lessee