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Blockchain in Residential
Real Estate
The residential real estate
industry hasn’t changed in
50 years…
Core Technology:
A $1.5T INDUSTRY IN THE DARK
AGES
VS
Blockchain Technology:
Tokens, Smart Contracts
The MLS
What is the MLS?
• A simple database of properties for sale
• Consumers go straight to Zillow, Trulia, homes.com, etc…
• So why does it exist?
• System of record for:
• Who are the agents?
• What is the fee?
• What is for sale (sq ft, beds/baths, etc…)
The MLS is just a record-keeping system…
• Seems ripe for replacement…
Superficial Answer…
• Replace the MLS with a blockchain-based system
• This isn’t quite right for two reasons:
• 1) The agents will fight against it
• 2) MLS is mostly about agents. MLS is used by agents. Wrong tool for
consumers.
• 3) Different problems need different solutions
Other parts of the RE eco-system
• Title
• Liens
• Insurance
• Property taxes
• History of repairs (show me the CARFAX)
• Offers
•
Most of this is not in the MLS
What is the blockchain?
What is it good for?
Blockchain Benefits
• Replace trusted third parties in transactions
• Create transparency and a (mostly) unfalsifiable record
• Enable automated, auditable processes amongst strangers
REX ALREADY SOLVING SOME PROBLEMS
Blockchain Technology well suited to:
Offer transparency
Partial ownership transfers
Title transparency
Speeding up escrow process
Validate home repair history
2% fee (instead of 5-6%)
No separate buyer’s agent
Transparency in home marketing
Digital record of home details
Leveraging data to offer one-stop shop
Is it possible to legally transfer
ownership of real estate on the
blockchain?
What about record home details?
Short-answer: Yes, but not yet
• REX working with a company called Fabrica to create a blockchain-
based ownership transfer mechanism
• This system works, but doesn’t auto sync with county recorders of
deeds, property tax assessors, etc…
• Won’t be able to make full transition for these things until eco-
system catches up.
Know everything
about the home you
own.
BLOCKCHAIN
Vendor/Installer eco-system
• Easier to change than the government offices.
• But some may still resist. Appraisers, inspectors, etc… may have
less value if there is less uncertainty about the house for them to
address.
➔ Digitized property
ownership, exchange, and
data
➔ Blockchain ledger
➔ Security tokens, multi-party
interactions
FUTURE
PROOF
Security/equity
tokens represent
underlying assets,
loans, etc…
Combinations of
utility tokes and
equity tokes allow for
complex transactions
(transfer ownership
after
contingencies/liens
removed)
Custom utility
tokens remove the
need for 3rd party
involvement
MORE THAN A DIGITAL DEED
REAL ESTATE INDUSTRY OPPORTUNITY
REX set out to do what’s never been done -- go around the MLS & put big
data, AI and machine learning to work make it right for consumers and to do
some good for the world along the way.
We’re defining and developing standard blockchain technology for use
across real estate eco-system
REX is setting the stage for peer to peer real estate transactions and will
soon be offering real estate blockchain tokenization as a service…
Is real estate ready for blockchain?
THANK YOU!!
Andy Barkett
VP Engineering, REX
abarkett@rexchange.com

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Data Con LA 2018 - Blockchain in Residential Real Estate by Andy Barkett

  • 2. The residential real estate industry hasn’t changed in 50 years…
  • 3. Core Technology: A $1.5T INDUSTRY IN THE DARK AGES VS Blockchain Technology: Tokens, Smart Contracts The MLS
  • 4. What is the MLS? • A simple database of properties for sale • Consumers go straight to Zillow, Trulia, homes.com, etc… • So why does it exist? • System of record for: • Who are the agents? • What is the fee? • What is for sale (sq ft, beds/baths, etc…)
  • 5. The MLS is just a record-keeping system… • Seems ripe for replacement…
  • 6. Superficial Answer… • Replace the MLS with a blockchain-based system • This isn’t quite right for two reasons: • 1) The agents will fight against it • 2) MLS is mostly about agents. MLS is used by agents. Wrong tool for consumers. • 3) Different problems need different solutions
  • 7. Other parts of the RE eco-system • Title • Liens • Insurance • Property taxes • History of repairs (show me the CARFAX) • Offers • Most of this is not in the MLS
  • 8. What is the blockchain? What is it good for?
  • 9. Blockchain Benefits • Replace trusted third parties in transactions • Create transparency and a (mostly) unfalsifiable record • Enable automated, auditable processes amongst strangers
  • 10. REX ALREADY SOLVING SOME PROBLEMS Blockchain Technology well suited to: Offer transparency Partial ownership transfers Title transparency Speeding up escrow process Validate home repair history 2% fee (instead of 5-6%) No separate buyer’s agent Transparency in home marketing Digital record of home details Leveraging data to offer one-stop shop
  • 11. Is it possible to legally transfer ownership of real estate on the blockchain? What about record home details?
  • 12. Short-answer: Yes, but not yet • REX working with a company called Fabrica to create a blockchain- based ownership transfer mechanism • This system works, but doesn’t auto sync with county recorders of deeds, property tax assessors, etc… • Won’t be able to make full transition for these things until eco- system catches up.
  • 13. Know everything about the home you own. BLOCKCHAIN
  • 14. Vendor/Installer eco-system • Easier to change than the government offices. • But some may still resist. Appraisers, inspectors, etc… may have less value if there is less uncertainty about the house for them to address.
  • 15. ➔ Digitized property ownership, exchange, and data ➔ Blockchain ledger ➔ Security tokens, multi-party interactions FUTURE PROOF
  • 16. Security/equity tokens represent underlying assets, loans, etc… Combinations of utility tokes and equity tokes allow for complex transactions (transfer ownership after contingencies/liens removed) Custom utility tokens remove the need for 3rd party involvement MORE THAN A DIGITAL DEED
  • 17. REAL ESTATE INDUSTRY OPPORTUNITY REX set out to do what’s never been done -- go around the MLS & put big data, AI and machine learning to work make it right for consumers and to do some good for the world along the way. We’re defining and developing standard blockchain technology for use across real estate eco-system REX is setting the stage for peer to peer real estate transactions and will soon be offering real estate blockchain tokenization as a service… Is real estate ready for blockchain?
  • 18. THANK YOU!! Andy Barkett VP Engineering, REX abarkett@rexchange.com