The real estate market is the place where people trade, transfer, exchange real estate. It is one of the important markets in the national economy because real estate is not only a property, which have great value in terms of economic, but also a place where everyone may live their entire life. Real estate, hence, becomes great opportunities to invest and earn. Nevertheless, although there are many chances in real estate industry but there are still issues need to be resolved. IAT – a blockchain project, which uses consensus protocol, is created to focus on solving challenges in traditional real estate market.
Challenges Of Traditional Real Estate Market
There are many challenges for people who are participating in real estate; one of this is transparency of legal document, which can waste their cost and time. For instance, financial and credit risks are headache problems of real estate businesses. Since businesses have spent a lot of money on site clearance, interest payment, debt repayment and project management costs, but still not meet the requirement to implement the project due to various stage to verify legal documentation. Enterprises will be in extremely difficult circumstances, even at risk of bankruptcy, if the project does not complete legal procedures leads to unable to start the project. The domino effect when businesses cannot predict the legal risks and the time to start building, leading to failure to comply with commitments with customers under signed contracts. Next, disputes between owner and client are one of the most common barrier that real estate participants have to overcome. In particular, disagreement between investors of apartment projects and residents of public condominiums on public spaces, service costs and service quality; disputes between associated parties, real estate joint ventures in development of projects, mainly between local companies and foreign parties. In addition, disputes that may form in the future between project owners and commercial banks in settling bad debts associated with investment modes or collaterals. So, how can IAT address all of this issue? Let’s figure out in the next part.
How IAT Tackle Challenges Of Traditional Real Estate Market?
IAT, which refers to Instant Assets Tokens aims to provide solutions for all problems of real estate industry mentioned above through implementation of blockchain technology into IAT platform. In the ecosystem of IAT, NIAT will be its main native token, which is ERC20 compatible, and it can only be purchased by IAT and it will be used to transfer within the network to ensure the high-speed transaction and safety for all parties. Besides, because it runs on Ethereum network, hence, smart contract will be used to make sure all of the transaction is transparency. More importantly, this NIAT token can be easily bought in any reputable digital asset-trading platform with good liquidity. As mentioned above, there are many types of dispute in property investment between real estate participants because all of the buying and selling process is executed on paper or even by mouth in some case. However, all of these problems will be completely solved thanks to the superiority of smart contract. To be more precise, the entire operation of smart contract is done automatically and without interference from outside or through an intermediary third party. Transactions made with smart contracts are transparent, easily accessible and cannot be tampered with or reversed. The terms in smart contract are equivalent to a legally binding contract and are recorded in the programming language. As a result, typical process in real estate such as reimbursement for tax advisory and services, commission settlement for agents and brokers, payment for legal services and assets acquisition or payout for apartment house services will all be clarity and autonomous by dint of smart contract.
In order to make a smooth adoption of IAT platform after finishing beta testing phase and launch the mainnet, IAT already cooperated with many respectable enterprises. The first noteworthy established association is Land Asia Realty & Development Corp, who is one of the biggest real estate agencies and has representative office across Philippines, with the purpose of bringing 5,000 of their brokers and agents to be users on IAT Platform. The reason for this cooperation is that Land Asia Realty & Development Corp wants to revolutionize their business model via cutting-edge blockchain technology as well as digitization of assets. Apart from this, the collaboration worth US$100 million between IAT and Asia Pines Philippines Inc is another remarkable affiliation. Especially, this partnership will allow IAT platform’s users approach a mall and six skyscrapers of top-of-the-line condominium of Asia Pines Philippines Inc.
In conclusion, such barriers stated above stopped many investors who want to come into real estate market, making the market frozen for many years. Therefore, the implementation of state-of-the-art blockchain technology is necessarily requirement for the continuous development of real estate field and eliminating the traditional barriers. IAT – with their solid team, great partnership and outstanding technology definitely play a key role in this revolution of blockchain-based real estate aspect.
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