How can Blockchain be integrated into the "title search process" of buying a home?

Question

Do you think the blockchain technology to record and verify transactions on one mutually accepted ledger will ever be able to be accomplished for USA real estate?   I understand the general process of how the title companies like Catic operate but would anyone with more in depth knowledge be able to elaborate on how the specifics would be able to be transitioned to a blockchain platform?   Do any title companies already use blockchain in their operations?   If not would it be possible to start one that does.

Carlos Ptriawan · Answer

Why only good luck Peter :) I guess the idea doesn’t make sense but these GenZ are so much into crypto these days lol

Seth Tucker · Answer

All, back to the original question (paraphrased): "will blockchain be used as a mutually-accepted ledger for recording and verifying U.S. real estate transactions?"

Answer: No. There is no way that this is happening in any meaningful way for the foreseeable future.

Alexander King · Answer

Use of AI can eventually be used to back date all the electronic records and the old school recordings would have to be scanned in.  Once that is in, just like we pay for title insurance now, maybe it is then paid to the source of the company to integrates blockchain to record title.  Just. a thought.

Peter Walther · Answer

The idea of using block chain tech in title recording is not new, it's been discussed for years.

One of problems in implementation is where and when do you start.  US land records go back to before there was a US.  Some titles start with a grant from the King of Spain or France or England.  Some states have laws that cut off ancient claims at 30 years or 40 or 60 so maybe you could start there.  So, if you start at 30 years, who's going to bear the cost of someone chaining the title for every piece of property in the US?

Then you have a problem with ambiguity in legals and the interpretation of the interests in the property.  States that were one of the 13 original colonies don't have the benefit of having been surveyed and laid out under standard plan like the subsequent states.  Legal descriptions in those states can rely on the old apple tree on farmer Brown's property as a boundary.  Figuring its location today takes a lot of field work, interpretation of land records, historical use and guesses.

Then there's US Government Survey work which is notoriously inaccurate.  Overlaps and hiatuses abound.

Easements can also be ambiguous in their location and terms.

Then we get to the issue of interpretation of what's found.  Was the easement just for ingress and egress to the lake or is the easement holder also entitled to park there and put out a chair?  Was the grantor competent to sign the deed or does the fact that she was 98 years old and in a nursing home when the evil sister (ES) had her sign the deed that left out her other daughter and son render her subject to claims of incompetency to the undue influence of ES?  Or did mom sign at all since the medical records show she was in and out of consciousness at the time.

These are all examples of things that lead to title disputes that just identifying the interest may not resolve.  Title insurance claims people work out these issues every day.  With a block chain, who is going to step up to resolve the issues and reimburse the losing party?

Carlos Ptriawan · Answer

I think there would be danger if you keep hard asset transaction into crypto-like transaction. The threat of cybersecurity is extremey serious and I can tell you hacker is always two step ahead of the good guy.

However there still need to capture all transaction in one cloud-like that saves the whole database and AI or LLM model could create faster title insurance issuance.

Chris Seveney · Answer

@Carlos Ptriawan

Some

Companies do this as they have title farms I believe

But as mentioned you have counties in many areas of this country where aunt bettty and uncle Billy have been working the desk in the recorders office for 50 years and will hand it down and everything is done in person - not even electronic filing

Then you have areas like lake county Indiana that are so corrupt they also don’t do electronic (or didn’t for years) because of politics / corruption

So while it’s a perfect example - government will not allow it to get implemented as it would be efficient and reduce costs which the government never wants to do that

Peter Walther · Answer

Good luck.

Carlos Ptriawan · Answer

What is the cons of blockchain ?

Carlos Ptriawan · Answer

I thought Alexander(OP) only ask for one buy and sell transaction to be recorded in blockchain, but not the whole county. That would be crazy and for what advantage ? Who can access the record ? hacker ..... lol

Alexander King · Answer

I see your argument.  Its an interesting point and much is changing which is why we are both talking about it so we can stay above the curve.  One thing that can't go away, is the relationships we make so that referrals keep coming in!

How can Blockchain be integrated into the "title search process" of buying a home?

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