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Bitcoin-Only Property Sale: UNESCO World Heritage Site in Ibiza for 1,850 BTC

When a Texas-based real estate brokerage firm sold a property using just Bitcoin, the ease of transaction became topical.

“In a matter of 10 minutes,” says Sheryl Lowe, the agent who represented the buyer in the sale, “the Bitcoin was changed to US Dollars and the deal was done!”

The same factor is playing out again. Handlers of the sale of a historic palace in the Spanish resort town of Ibiza are banking on the ease of Bitcoin to put the property on the market.

El Palacio Badarji is on sale for 1,850 Bitcoin. No cash equivalent indicated. The location which was declared a World Heritage site by UNESCO in 1999 is an 18th-century palace built in 1740.

It’s been renovated in the last few years. Yet, its four en-suite bedrooms, a master suite with private lounge room and a living room with reception area as well as other parts are intact.

Ease of use

The ease of use is a major factor that would continue to cause leading real estate brokerage to look keenly in the digital currency’s direction. This is considering the hassles that always go with the sales of real estate ownership especially across borders.

Just last month, a mansion in London was put on the market for £17 mln. Its sales notice stated that the potential buyer has to pay in Bitcoin – about 5,050 BTC at the time.

Lev Loginov, who put the property up for sale, talked about transactions in Bitcoin being “…done quicker, more efficiently and it is much easier to deal with than using banks, which are putting in unnecessary over-regulation.”

British entrepreneurs, Michelle Mone and Doug Barrowman, also launched a Bitcoin-priced real estate development in Dubai. Mone sees a time when early adopters will give way to a more mainstream application of cryptocurrencies. Hence, “… it’s a logical extension to take land and buildings and effectively offer people the opportunity to pay in cryptocurrency or bitcoin rather than just fiat currency.”

Some of the other Blockchain-backed projects with interests in the real estate market include Propy, Atlant and Brickblock. Propy’s decentralized title registry platform was recently used in the sale of an apartment in Ukraine, while Brickblock plans to offer the world’s first tokenized real estate project – an apartment block in Berlin going on sale in December.

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Blockchain Laying Foundations for Real Estate Market: Experts

Blockchain, including digital tokens, are revolutionizing many aspects of the real estate market.

It was only a matter of time before two industries that have seen similar booms in many regions, would come together. Although the real estate industry is traditionally slow to adopt emerging technologies, it seems that even this sector can’t resist the hypnotic pull from Blockchain and the wider cryptocurrency market.

Dmitry Faller, CEO of Primalbase, a shared office space Blockchain platform, tends to agree:

“Real Estate is a conservative and a traditional industry, and thus it is ready for disruption, and Blockchain needs real use-cases that are not just based on speculation.”

Buying and selling

A couple of weeks ago it was revealed that a partnership between The Knox Group, BitPay and a British baroness will offer up luxury Dubai apartments in exchange for Bitcoins in a deal worth $330 mln.

Small-scale Bitcoin-for-property transactions have been done before. A London property company is offering to accept down payments in Bitcoin, and a Miami based investor has been looking to sell his $6.5 mln mansion for Bitcoin, but not of this magnitude.

And just yesterday the first house purchase in Bitcoin was reported in Texas.

All this means that mainstream developers have a high level of confidence in the disruptive potential of the technology.

Julian Svirsky, CEO of ATLANT:

“We foresee unprecedented opportunities for disruption in the global real estate and lodging markets that will allow investors, lodging guests and property owners to benefit in many ways, providing cost-savings and convenience, compared to the currently inefficient and expensive options.”

Renting

The same London based property company will be accepting rental payments from its tenants in the form of Bitcoin by the end of the year.

In Switzerland, Vision Apartments, a serviced apartment provider, has been accepting rent payments in Bitcoin and continues to experiment, stating that:

“Exploring the different Blockchains, especially Ethereum, has shown us the numerous possibilities there are to offer new and innovative services to our clients.”

David Drake, member of LAToken’s Advisory Board:

“The secondary and primary markets of fractional ownership of home equity and mortgages are now on the verge of a breakthrough, thanks to cryptocurrency Blockchain smart contracts.”

Land Registry

In a recently completed pilot, Chicago’s Cook County Recorder of Deeds tested the transferring of real estate ownership on a Blockchain platform and how this would be conveyed into the public record. The test was successful and met all the procedural and legal requirements. The report states:                       

“Though Blockchain can make transacting real estate simpler, safer, more accurate and easier to understand, there are challenges facing its adoption. In many cases, these challenges are the very reasons why such a new structure should be adopted, and thus can also be looked at as opportunities.”

Sweden’s land registry authority (Lantmäteriet) has been recording property and land on a private Blockchain since 2016, in an initiative that is set to save taxpayers more than €100 mln ($120 mln). The Bitcoin Blockchain has also been used in Brazil to help the government resolve ownership disputes in transparent and fair manner.

Blockchain’s power to revolutionize the real estate industry lies in its ability to speed up the closing process, increase transparency and reduce costs in every part of the transaction cycle.

Ragnar Lifthrasir, founder of the International Blockchain Real Estate Association (IBREA) says:

“Like any emerging technology, Blockchain will reach mainstream adoption when entrepreneurs create secure, easy to use applications that solve a problem. Real estate owners and businesses who adopt Blockchain earlier will experience the biggest benefit and will set themselves apart as leaders for the next revolution in the property industry.”

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Ripe for the Plucking: Real Estate and Blockchain Technology

A short conversation with any real estate agent or account representative will quickly degenerate into a gripe session about low-quality technology and difficulty with managing contracts. It’s no secret that the industry is ripe for change, and that change will come sooner rather than later.

The first sign of movement is the growth of the Airbnb model, allowing moderate peer to peer connectivity, and making a system that allows users to have more freedom of choice. But Airbnb is still a tiny blip in the massive $217 tln global real estate market. Granted, a blip of something massive is still big, but the opportunity for change is clear.

ATLANT, a new and powerful Blockchain technology platform for real estate, believes that Airbnb is onto something, but can’t take it to the level that the public desires. The company is planning to create a fully decentralized real estate ecosystem where clients have the power to buy, sell, and rent property without the profiteering of centralized hubs or brokers.

Tokenize it

Selling property is clearly a complex process. When a seller wants to liquidate a piece of real estate, especially of substantial value, the asset must be placed on the market, advertised, and, when a buyer is found, sold. The process of transfer takes extensive time and money as well.

ATLANT has created a system that allows sellers to tokenize their asset, effectively treating it like a stock sale, and liquidating that asset through a token sale within the platform. The tokens the seller collects can be exchanged for fiat currency, and the buyers own a percentage stake in the property.

Brokers, escrows and closing costs are all virtually eliminated. The process is rapid and succinct, and the transfer is complete within days rather than months. Built with excellent technological resources, the ATLANT platform is more than just another ICO. It is a revolutionary marketplace for exchanging real assets fluidly.

Decentralize it

More than just a place to buy and sell, ATLANT is creating a system that will outdo corporate rental hubs at their own game. The beauty of a peer to peer system is that it removes the middleman, and through technology creates a connection between parties on either side of a contract.

ATLANT has created a system where tenants can find rentals directly from owners, then create and conclude a rental contract without having to leave the ATLANT ecosystem. Without the complexity of a centralized hub, costs for clients drop drastically, and both renters and landlords are happier. ATLANT’s system is poised to change the way rentals are found, worldwide.

The company has an ICO starting Sept. 7 and concluding Oct. 7. Interested parties will be able to acquire ATLANT’s token, the ATL, which will be used as the internal currency for transactions on the platform. Buyers can receive up to a 19 percent bonus for joining in the first 10 percent of tokens sold.

Disclaimer. Cointelegraph does not endorse any content or product on this page. While we aim at providing you all important information that we could obtain, readers should do their own research before taking any actions related to the company and carry full responsibility for their decisions, nor this article can be considered as an investment advice.