Propy, a decentralized and blockchain-based real-estate platform, has revealed that its system has successfully contributed to the buying of a new home in California, that is, without the involvement of a middleman, which in this case are banks.
The transaction was supposedly done through the use of bitcoin [BTC], which eliminates the need for banks altogether. Since the entire process can be done online, this also eliminates hindrances on a location basis.
CCN reported the news and shared how the deal went about. It appears that three individuals were involved, which include, California-based real-estate agent, Kate Fomina, Luke Carriere, the buyer, and Diana Dominguez, the seller. At the time of the agreement, Fomina was supposedly in Hong Kong, with Carriere and Dominguez situated in New York and Northern California respectively.
This an exemplary of the potential blockchain has in redefining many industrial procedures, and the CEO of Propy, Natalia Karayaneva also believes this to be the case. Karayaneva specifically stated that the likes of,
“blockchain technology can truly revolutionize the real estate purchasing process and the management of public records.”
The fact that this new platform can rid the real estate system of complicated and heavy documentation makes Propy a first mover. In particular, the CEO shared immense excitement and hopes,
“to facilitate more property transactions and reach more milestones […] to automate the real estate industry.”
How Propy Works
It appears that Propy’s system takes a total of nine easy-to-follow steps to transfer both the funds and the title of ownership from the seller to the buyer. Here is a quick breakdown as how the transaction above would have went about:
Step 1: Buyer finds a house to his/her liking and submits a reservation request.
Step 2: Seller’s broker gets notified and invites the Seller, Buyer and Buyer’s broker.
Step 3: A purchase agreement must be signed by the participants and the information will then be recorded on blockchain.
Step 4: A title report will be uploaded for both Seller and Buyer to sign.
Step 5: Seller’s broker will send out a disclosure document that needs to be completed by everyone.
Step 6: Title company will provide Buyer and Seller a list of estimates, which must be agreed upon and filled out.
Step 8: After the payment has been completed, both Buyer and Seller need to sign the Addendum, which will also be recorded on blockchain.
Step 9: All closing documents will be published on the Ethereum blockchain and the Buyer will now be the new owner of the property. A QR code scanner will pop up to help retrieve any information that has been posted on blockchain regarding the respective transaction.
To learn more about Propy, go to: propy.com/