Blockchain - Necessity of the real estate industry

Prediction and Realization

I couldn’t realize how much the blockchain is essential until I personally met with a little fraudulent act by a house seller while I was ready to own a house. Owning a house is a dream of many young millennial however while we hurry in purchasing the property we miss to verify all the documents just by trusting the system or having a personal belief. Although in the today’s hyper-connected world every process is interlinked most of the validation mechanisms are still unconnected or most of the certifying procedures are old traditional manual mechanisms. When we decide to own a house & search in the web for housing loan, by predicting your search data, 20 to 30 housing loan consortiums will contact you asking you to apply for the housing loan even they would confirm you that only minimal documents are required and sometimes they also introduce you to a seller with whom they already had the tie-up or whom they have already given the housing loan ready to sell up his newly constructed house.

They would also say that seller A is their existing known customer when you apply for a loan here & purchase the same house, all the documents would be transferred to your account by default. Over the period of time when you realize 2 or 3 important documents missing which are not needed at the time of registering the house, however, those are very much required for long run, You will totally be disturbed but you have an option to go to consumer forum which would file your case on the seller & take it to the court but this would simply waste a lot of time and effort.  When you purchase the house below documents are necessary & you must certify/register all the documents on your name by reaching the respective authority offices since each of the below documents certified by different Govt offices located at different locations of your area which would give you a piece of certified paper, written & signed with original handwriting.

1)    Title Record (Katha Issue / Katha Transfer)
2)    Encumbrance Certificate (EC
3)    Construction Certificate (CC)
4)    Property Tax Register / Paid receipt for last 20 years.
5)    NOC Certificates.
6)    Previous Sale deed of the seller (Party A)
7)    Plan of the house (Building Plan)
8)    Permission for building the house
9)    Occupying certificate
10)  Electricity Account Transfer
11)  Water Supply Account Transfer

Trust and Verification

To resolve this serious problem in order to make the real estate trusted & verified, blockchain like technology implementation is very necessary which would connect the dots on its decentralized ledger network and ensures the required documents are already digitally verified & available on the public domain for the authorized access. Here the entire chain of system will be connected through a network even the seller’s, buyer’s KYC information would be accessed (such as PAN, Aadhaar, Voter ID, Loan Accounts), verified by default, I’m not sure whether the blockchain is going to revolutionize the real-estate industry but certainly it’s going minimize the fraudulent transactions and buyer would feel safe while he is investing lakh of crores of rupees in the property.

When buyer types in the property details in the blockchain network he should be able to get the thorough history of the property right from who were the past owners of the land or building with the details if the property is holding any loans on it also the current value of the property should be gauged & house registration fees should display instantly.

Implementation and Conclusion

I had to overcome an incident, The seller here is a Govt employee in an officer grad position was trying to bluff us with his babu mentality, here are the two scenarios he was using his brain.

1)  He was not having certified the house with CC- Completion Certificate for which he  was required to pay some amount of fees to the local municipal corporation, His idea was to push that to us (buyer) and have us to pay that fees to the municipal office to get certify the house.

2)  He had just self-declared some amount of property tax and got the receipt for it & submitted to sub-register while doing the registration of the house to us however he hasn’t paid the property tax for last 12 years of empty land which was pending as due again his idea was to push that to us.

However we were more intelligent than him & we caught him but it was too late after all putting lot of effort & spending valuable time, He was not having the guilt about the fraud he was trying do it. Finally, we told him that we would file a case against him that is when he started running to all the offices to pay the due for property tax & certify the house completion.

If the blockchain is implemented all the above scenarios would be easily traced with the house ID or the property ID within a fraction of second we would get the entire history of the property which would help the buyer to nail it down what needs to be done to purchase the house.

1 comment:

  1. Hey thanks for this amazing post! Thank you so much for sharing the good post, I appreciate your hard work.Keep blogging.
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