Preview the Future of PropTech

March 11, 2016

The future of PropTech, will actually be the part of the future of FinTech. A number of high level technologies, have swiftly come about that will cause this transition in these opposing but similar technology industries.

Currently data and contracts are separate. Perhaps your property software merges data into pre-made templates, for example to produce a tenancy agreement, this is not what I mean.

Imagine a digital agreement that is not only binding like the real-life counterpart, but it is also its own enforcer of those terms.

For example a pre-sales agreement made between the Vendor and a Purchaser of a property. Within this agreement, it states both parties to pay a deposit to an Estate Agent, and on completion of the sale, the deposits returned.

Currently this type of agreement requires a manual enforcer and trust in the Estate Agent’s processes.

This will change with Blockchain technology, a decentralized verifiable ledger that can handle things like currencies, assets and rules. A good example is Ethereum, a basic blockchain level coding tool, that allows programmable contracts. Allowing logic and rules to tie into real-life finances and investments, in a reliable and trust-less manner.

Now back to the example, how does a contract become self enforceable.

If we built this sales contract on a blockchain, we could store value in the Cloud. Effectively connecting say a payment API to receive the funds and a payment API to pay out the deposits. We could then link the contract to the Land Registry API, as the trusted source of the approval, which could trigger the rule to pay back the deposits.

We could go further and add time limit clauses, that if a sale is not completed by such a date, then both deposits pay out to a certain party automatically.

Understanding this, you may see that the future of PropTech will be also the future of FinTech, as we merge Assets, Money into programmable agreements.

Do you agree?

What else do you think the future of PropTech will hold?

You May Also Enjoy

Breaking News

Real-life value of the most famous Christmas film homes

The real-life value of the most famous Christmas film homes, from budget classics to multimillion-pound mansions New research has gathered and analysed the estimated valuations of real homes featured in popular Christmas films, ranking them by cost. The priciest homes are featured in The Holiday, Trading Places, and Home Alone, with Amanda’s home from The…
Read More →
Estate Agent Talk

77% of buyers refuse to buy a flood risk property

Despite 4.7 million English homes facing flood risk New research from Lyons Bowe has revealed that 77% of homebuyers would not consider purchasing a property in a flood risk area, despite more than 4.7 million homes across England currently being deemed at risk of flooding. The findings come as the Government launches a new flood taskforce amid…
Read More →
Letting Agent Talk

Poor Communication becomes Expensive at Scale

The hidden cost of fragmented property management By Adam Hills, Client Services Director, LRG Living Markets A landlord asks for an update on a repair. The property manager asks the contractor, who is waiting for access from the tenant. Meanwhile, the accounts team has received an invoice but cannot tell whether the work is complete.…
Read More →
Estate Agents should not all look the same
Estate Agent Talk

When Estate Agents Decide to Go Solo

Leaving an established estate agency to work independently gives experienced agents more control over fees, client service and working hours. It also brings responsibility for compliance, cash flow and every part of the customer experience. Before handing in your notice, test the idea against realistic sales volumes, local competition and the amount of time you…
Read More →
Estate Agent Talk

What Should Buyers Ask Before Reserving a New Build?

Research from Skipton Building Society has found that 44% of aspiring first time buyers would rather buy a new build than an older property, with just 30% favouring an older build. Modern fittings and appliances were the biggest draw, cited by over half of those who preferred a new build, alongside the promise of lower…
Read More →
Breaking News

The UK cities with the largest property price increases revealed

A new study has unveiled the most challenging UK cities for first-time buyers. Newry leads Northern Ireland’s ranking, with a property price increase of 12.8%, while Hull leads Great Britain’s ranking, recording an increase of 6.6%. The research examined data from HM Land Registry to reveal the cities that have faced the highest property price…
Read More →