Owning a real estate is rarely smooth sailing. Real estate plays an integral role in the economy of the country, since it provides better returns than the stock market without as much volatility. Moreover, it gives smooth cash flow with passive income from rental properties and generates wealth through appreciation and building equity. But as what everything has, there are still problems and issues that could potentially affect the ownership within the real estate.
SECURING TENANTS: Expect to get challenged in a small market during an economic downturn if you own a common or mediocre property. One of the biggest challenges faced by most commercial state owners is attracting and retaining tenants because most commercial real estate are leased.
ACCURATE INFORMATION: Some properties do not possess an effective marketing plan to meet the clients’ expectations and demands. Some information is questionable, inaccurate, unrealistic expectations for lease terms and unresponsive leasing process.
LEGITIMATE PAPER WORK: Clerical or filing errors could affect the deed or survey of a real estate property and can cause financial strain in order to resolve it. At the end of the real estate transaction, a title search about the property is needed to be completed to determine whether there are title defects that can have an effect on the purchase. One error that could be filed in the given public records is the description of the property itself that seems to be accurate, even if it isn’t. Buyers have no control over a property’s past mistakes that could have been made by those filing and recording the documents. Hence, it is nearly impossible to completely avoid those given errors in public records.
Moreover, during the ownership within the real estate, there is always a high risk of fraudulent activity that one might encounter. The worse thing than might happen is going through a tiresome process of owning a real estate and later on, all the efforts are wasted due to its not proven credibility and authenticity. There is some pending litigation wherein these liens or encumbrances could have a negative impact to an ownership of a specific buyer in the real estate and intended use of the property.
HIGH TRANSACTION FEES: The low supply of affordable homes for the people and the decades of housing underproduction have an impact in the residential housing wherein there is a need to expand the density and increase its supply for the purpose of lowering the price. Down payment is needed before getting the property ladder, then one more thing is that taxes, transaction fees, documentary stamp tax, registration fee, notarial fees and loan fees can add up to a large amount one should also shoulder.
Time and Costs Savings: The current process of ownership transfer can take months due to the various parties involved and the need to verify the documentation during various stages, usually with the assistance of a lawyer. The blockchain technology will be able to address the above by maintaining a uniform source of information for all the parties that are involved in the transaction. Also, emerging platforms focusing on other functions such as payments can be integrated in future. The project will also be providing a platform for listings.
