Most of a real estate closing revolves around trust and verification. Buyers and sellers use trusted intermediaries to verify that properties, funds, contractual obligations and insurance safety nets are all properly vetted before closing a sale. That's part of the reason a real estate transaction has so many participants. Agents, lenders, inspectors, title insurance providers, notaries and closers provide independent verifications of individual facets of a sale. An escrow company or an attorney is usually the organizing force that pulls these individual points of verification into one trusted transaction. Security is lacking The security of the current process is weak at best. Homebuyers are frequently being robbed of their purchase funds. By simply hacking an agent or closer's email account, criminals have put themselves in control of the closing communication. The hackers spoof the closer's email, ask the buyer to change the wire instructions, and the funds roll into an unve...
- Criminals are taking advantage of poor security in real estate transactions to defraud buyers.
- Security holes in the real estate transaction could be fixed with verification software.
- The role of a closing agent could be drastically altered with smart contracts taking over verification.