Three examples of implementation of Smart Contracts
Smart contracts in Real Estate
Buying, renting or leasing property is still a time consuming and very inefficient process. These processes are largely paper based and still in controlled by real estate agents, banks, lawyers and the registration at a deeds office. This can lead to incorrect listings, rental scams and can open up the door for fraud to be committed. To address these inefficiencies, Smart contracts can be used to assist, automate and bridge the gap between all the parties involved in the process.
Current process when renting a property
• Choose an agent
• Search for a property that you interested in
• View available properties
• Ensure credit score is high enough to qualify for the property
• Negotiate terms of purchase agreement
Smart contracts can address some of the requirements listed above
• property searches can be done through the Blockchain using a Multi Listing System – The MLS (Multi Listing Service) enables potentials buyers to view properties based on their requirements.
• Blockchain digital identities of assets and individuals can be used to conduct a background check on the potential buyers
• Terms and conditions of the agreement can be uploaded on the blockchain i.e. a Smart contract is created
• The Smart contract can facilitate payment of the security deposit via a bank account
• Transaction is agreed upon by both parties and is electronically recorded