Block Chain Technology: Smart Contract Application in the Real Estate Industry in Kenya

Abstract

Block chain is widely known as the underlying technology powering bitcoin. However, with the wide usage of technology, the block chain based smart contracts are being used to serve a wide range of data set such as financing, purchasing, leasing, sale and management of property transactions. This research embarked on determining the applicability of smart contract in the real estate industry. The researcher explored the usage of smart contract in management of property, purchasing, leasing and sales. Data was collected using secondary data from different articles and journals. From the findings revealed that, the real estate industry is transforming fast and there is need to have all the data in one place to reduce cases of fraud and simplify the title deed record process. Smart contract eases the lack of trust between the buyer and seller since with block chain, data is more transparent and there is accurate record keeping. It also provides an opportunity for auto-confirmation by the land registries and enhances transparency. It was further revealed that with smart contracts, several entitles can modify the database including tenants, owners, investors and lenders. Recommendations indicate the real estate industry should adopt block chain due to its usefulness and ability to create a difference in the industry