Real estate title companies face the fact that the industry is changing. There is a growing focus on adopting technologies that can drive efficiency and capture more significant value. As new technologies that seem to be capable of solving the difficulties associated with real estate transactions emerge, a shift in focus can prove to be a great source of opportunity for title companies.
Current Methods for Storing Title Records Are Ineffective at Preventing Fraud
Title companies face the unfortunate truth that current methods for storing title records are highly ineffective; title records are often stored as paper documents in a local county courthouse. The problem with this method of recordkeeping is that paper documents are highly vulnerable to fraud; additionally, the information on these documents can be recorded incorrectly. According to a report published by the American Land Title Association, 25% of all title records have problems that title companies detect and fix. Based on this number, it is clear that the recordkeeping process for real estate ownership needs improvements.
Blockchain Is Well-Suited to Tackle Fraud When It Comes to Recordkeeping
There is a piece of technology that is well-suited to tackle the problem of title fraud and defects. Blockchain can serve as a distributed and immutable ledger upon which titles can be digitally recorded. The technology would go a long way in eliminating most of the fraud and tampering vulnerabilities that currently come with the existing method of recordkeeping.
Progressive companies that seek to leverage blockchain technology to bring greater efficiencies to real estate transactions include Propy. Propy offers a blockchain-based title registry that allows for the secure and scalable storage of title records. With this platform, copies of all records get stored on the blockchain. Additionally, smart contracts govern the transaction process.
The value that can be captured by blockchain-based products like Propy’s title registry is significant. The new method promises to bring about a more effective way of recording real estate transactions.