This Real Estate Marketplace Makes Property Fraud Obsolete

We have all heard of identity fraud and wire fraud, but what about property fraud? Refurbished, vacant, tenanted, and mortgage-free properties are at high risk. Fraudsters attempt to get ownership of these properties by using forged documents to transfer the deeds to their names. They can also participate in wire fraud or use other creative methods to impersonate the registered owner. Suffice to say, it is a real and present issue in the real estate industry, and it is 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 that you want. More importantly, though, there is the element of trust. If Amazon did not follow through with its promises, it would not be where it is today. When you buy a product off of the Amazon site, you fully know that it will eventually arrive at your front door. Propy is recreating this trust and transparency with its online real estate marketplace. It also allows users to close the deal online. Propy then “delivers” the product (a title deed).

Propy Keeps Buyers’ and Sellers’ Money Safe and Secure

When signing up on Propy, you provide your bank account to the system. This private information is not shared via email, as email is a major pathway for wire fraud. Instead, the Propy system safely stores all sensitive information. That way, both parties can safely initiate the transfer and have everything in place on the blockchain. To verify that the bank account belongs to the correct title company, Propy uses a licensed 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 escrow function of the payment.

Blockchain Technology and the Future of Transparency

In many cases of property and wire fraud, title agents and realtors are suspected of criminal activity; because the aforementioned parties have access to internal information, they are assumed to be the first on the list of the bad guys who are executing fraud. Oftentimes, agents become victims of fraudulent activities, even though they are not the ones who practice fraudulent activities. When fraud occurs, the seller or the buyer has to go to court to get the money back, providing documentation and paying expensive legal fees. Normally, legal authorities cannot find the stolen money; thus, brokerages or title companies have to cover the consumer losses by themselves. Propy is fixing this complex issue.

While humanity is still far from unlocking the full potential of blockchain technology, organizations like Propy are helping to bring blockchain technology’s full benefits to light. Uniform standards, increased trust, and full transparency can help to tackle the human behaviors of greed and fraud, once new tech adoption takes place.