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A real estate market that makes fraud obsolete

This real estate market makes real estate fraud obsolete

We’ve all heard of identity theft and wire fraud, but what about real estate fraud? Renovated, vacant, rented and mortgage-free properties are high risk. Fraudsters attempt to obtain ownership of these properties by using false documents to transfer the deeds to their name. They may also engage in wire fraud or use other creative methods to impersonate the registered owner. Suffice it to say, this is a real and current problem in the real estate industry, and it’s one that Propy aims to solve.

Propy’s mission to become “the Amazon of real estate”

Why is Amazon so popular? Yes, the site has everything you want. More importantly, however, is the element of trust. If Amazon hadn’t kept its promises, it wouldn’t be here today. When you buy a product from the Amazon site, you know full well that it will eventually arrive at your front door. Propy recreates this trust and transparency with its online real estate marketplace. It also allows users to complete the transaction online. Propy then “delivers” the product (a title deed).

This real estate market makes real estate fraud obsolete

Propy protects buyers’ and sellers’ money

When registering on Propy, you provide your bank account to the system. This private information is not shared via email, as email is a major avenue for electronic fraud. Instead, the Propy system securely stores all sensitive information. This way, both parties can initiate the transfer securely and have everything in place on the blockchain. To verify that the bank account belongs to the correct title company, Propy uses an approved third party to verify the legitimacy of the information. From there, the company calls the buyer to verify this information. In the future, smart contracts will also simplify the payment escrow function.

Blockchain technology and the future of transparency

In many real estate and electronic fraud cases, title agents and real estate agents are suspected of criminal activity; because the aforementioned parties have access to inside information, they are assumed to be first on the list of bad guys who perform the fraud. Often, agents are victims of fraudulent activities, even if they are not the ones who engage in fraudulent activities. In the event of fraud, the seller or the buyer must go to court to recover the money, provide documents and pay expensive legal fees. Normally, the legal authorities cannot find the stolen money; thus, brokerages or title companies must cover consumer losses themselves. Propy solves this complex problem.

While humanity is still far from unleashing the full potential of blockchain technology, organizations like Propy contribute to highlighting all the advantages of blockchain technology. Uniform standards, increased trust, and full transparency can help combat human behaviors of greed and fraud once new technologies are adopted.

This real estate market makes real estate fraud obsolete

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