An online property execution platform has reportedly completed the first online property transaction by blockchain.
According to Clicktopurchase.com, the home in Trowbridge, Wiltshire, went from initial marketing to a verified online exchange in just one week.
Clicktopurchase developed and released its blockchain platform earlier this year. Helping to speed up the home buying process, a verified bidder can submit an electronic offer on behalf of a buyer, with a legally binding electronic signature. Once accepted – either by the agent, conveyancer or seller – a second electronic signature is added and an immediate online exchange occurs.
Particularly useful in transactions where there are many different parties involved – providing everyone with access to the information they need – blockchain-backed contracts are predicted to be a “game changer” in the property market. In addition to improving certainty for both sellers and buyers and removing delays, smart contracts generated via the platform could also help to reduce gazumping and the number of transactions falling through before completion.
Using ‘hash’ and ‘encryption’ technology when creating audit trails and online property contracts, the system is reportedly able to hold data in a way which is practically impossible to alter and 100% reliable. As a result, blockchain, can be used to validate the registration of land titles and mortgages – something that is already being done by the government in the Republic of Georgia. HM Land Registry is also exploring using the technology.
Commenting on how blockchain might change property transactions forever, Clicktopurchase Chief Executive, Neil Singer said: “When you have purchased a property using Clicktopurchase, you have absolute proof of the right to ownership. When you come to sell, a buyer can completely rely upon your record.”
He continued: “Intermediaries will have a reduced role, solicitors will have less to check, and it raises a particularly interesting question – if you have absolute proof in your digital wallet that you have the right to ownership, then why do we need the Land Registry?”
Clicktopurchase offers blockchain-backed digital conveyancing on a ‘pay as you go’ basis at a rate of £500 per property, or on a monthly basis for £250, with a £100 per property fee.
With the Financial Conduct Authority (FCA) stating that the technology is likely to provide benefits particularly “in sectors where multiple participants need to share data and/or processes safely, particularly where firms are still reliant on paper-based records”, the latest transaction is likely to have a significant impact on the property industry.