We've all heard of identity fraud and wire fraud, but what about real estate fraud? Refurbished, vacant, rented and mortgage-free properties are at high risk. Fraudsters attempt to gain ownership of these properties by using forged documents to transfer title to their name. They may also participate in wire fraud or use other creative methods to impersonate the registered owner. This is a real and present problem in the real estate industry, and Propy intends to solve it.
Propy's mission: to become the "Amazon of real estate."
Why is Amazon so popular? Yes, the site offers everything you want. But, more importantly, there is the element of trust. If Amazon didn't deliver on its promises, it wouldn't be where it is today. When you buy a product from Amazon's website, you know full well that it will eventually arrive at your doorstep. Propy recreates that 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).^
Propy secures money for buyers and sellers
When you register with Propy, you provide your bank account to the system. This private information is not shared via email, as email is a major avenue for electronic fraud. Instead, the Propy system securely stores all sensitive information. Thus, both parties can initiate the transfer safely and everything is in place on the blockchain. To verify that the bank account belongs to the right securities company, Propy uses an approved 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 payment escrow function.
Blockchain technology and the future of transparency
In many real estate and wire fraud cases, title agents and real estate agents are suspected of criminal activity; since the aforementioned parties have access to inside information, they are assumed to be first on the list of bad guys executing the fraud. Often, agents are victims of fraudulent activity, even if they are not the ones doing it. When fraud occurs, the seller or buyer must go to court to get their money back, providing documentation and paying hefty legal fees. Normally, legal authorities cannot recover the stolen money, so brokers or securities companies must cover consumers' losses themselves. Propy solves this complex problem.
While humanity is still far from realizing the full potential of blockchain technology, organizations like Propy are helping to bring all the benefits of this technology to light. Uniform standards, increased trust, and full transparency can help combat human greed and fraudulent behavior once the adoption of new technologies takes place.