Electronic property transaction tool clicktopurchase has recorded its first residential sale using blockchain technology.
The platform, which previously focused on transacting commercial property sales using secure electronic signatures and contracts, moved to a blockchain system in October, that uses technology similar to the way digital currencies such as Bitcoin are managed.
All stages of the sale, such as offer and acceptance and exchange of contracts, are recorded on the blockchain ledger and given their own code that can be tracked and viewed online.
Electronic ‘smart’ legal contracts are generated and signed through the blockchain, speeding up the buying and selling process, although an agent will still need to register the transaction at the Land Registry once it completes.
Developer HS Property Group has become the first UK residential property company to record the online exchange of a residential property using the blockchain technology.
The transaction, which was reported in the blockchain, was for the sale of a four-bedroom investment property in Oldham, Greater Manchester, developed by HS Property Group for £116,500.
Guy Horne, director and co-founder of HS Property Group, said: “The way we currently transact property is anachronistic, protracted and unreliable. Using blockchain technology will be the future of property transactions.
“The speed and transparency it offers will democratise property investment worldwide.
“As a company which prides itself on innovation, we want to offer our global investor network a more straightforward and secure method to purchase residential investments without compromising any legal safeguards.”
Neil Singer, chief executive of clicktopurchase, added: “Some of the biggest problems the property industry faces are the length of time it takes to exchange contracts, along with the lack of certainty. Real estate transactions can be complex, but by using clicktopurchase the process is significantly quicker.”