CPROP is designed to address the most common and major challenges intrinsic to all real estate markets in the world, specifically, inefficiency and lack of security. Our mission is to drive standardization, automation and validation in transactional real estate to enhance operational efficiencies, reduce costs, improve accuracy and reduce risks for all stakeholders. CPROP will become an integrated platform that enables property investors to research, transact with cryptocurrency, and reliably secure and record ownership of their domestic and international property investments remotely.
OPPORTUNITIES UNLOCKED BY CPROP
Due to inherent inefficiencies in today’s transactional real estate, transaction costs can reach 10% or more of the total transaction value and the time required to complete the process can be very long, even excluding the time required to agree on a transfer price. And due to the large sums of money involved, the potential financial downside associated with a flawed process, including post-closing property registration and mortgage documentation, is huge.
These pain points are especially evident in cross border transactions which can suffer from a lack of standardization, lack of transparency, mounds of paperwork, risk of fraud, errors in public records, and a host of logistical challenges associated with getting buyers and sellers together.
Redundancy
Multiple lawyers may be required to perform separate tasks which are mostly repetitive in nature from one transaction to the next.
Unnecessary Risk Premiums
Title insurance is often required, especially by US mortgage lenders, to underwrite risks associated with imperfect titles and various types of liens adding an “unnecessary” layer of cost.
Closed Systems
Multiple Listing Services (MLS) generally restrict membership and access to licensed real estate brokers and agents which inhibits P2P transactions.
Risk of Defects
A variety of documentation-related defects can invade a real estate transaction, whether introduced through malfeasance (i.e. fraud, tampering and corruption) or human error.
Paper Processing
Because of the reliance on hard copies, all parties to a transaction (e.g. buyer, seller, each party’s brokers, lawyers and banks, the title company, insurance agents, escrow agent, and relevant local government offices, etc.) have limited access to transaction-related documentation which can result in duplication of effort, documentation errors and a more time consuming, cumbersome and expensive closing process.
Proximity Challenges
The buyer and seller may need to be in the same physical location to sign hard copies of closing documents creating potential logistical challenges and added cost.
Currency
The buyer may experience difficulty accessing and paying the purchase price in the seller’s currency of choice.
Misunderstandings
There can be a heightened risk of misunderstanding among the parties due to the buyer’s unfamiliarity with, lack of proximity to, or inability to read or speak the language of the seller’s jurisdiction.
