Anyone who has ever purchased property remembers their closing process as cumbersome, time consuming and filled with a multitude of service providers and documents, reports, disclosures and the like that needed to be drafted, read, executed and, in some cases, negotiated. This process becomes ever more painful when buyers and sellers are located at a distance from one another, let alone in different countries. As industry professionals know, as the closing process drags out, the probability of achieving the closing diminishes.
CPROP’s workflow management system automates the entire closing process and fills a void in the current spectrum of SaaS market offerings. Our agent-focused cloud-based platform will allow multi-party collaboration, process transparency and unprecedented trust by connecting everyone on the blockchain while giving parties access to a range of blockchain-enabled services being sought by the market such as automated workflow management and document generation, secure e-signatures, access to user-rated service providers, and a payment gateway allowing buyers to pay with cryptocurrency.
Commercial transactions are often stress-filled competitive procurements involving very large financial commitments. Undertaking due diligence on commercial properties can be quite time consuming due to the sheer amount of information relevant to valuation that a prospective purchaser would ideally like to have. But because this information presently resides in numerous, independent systems, it is difficult to compile, especially rapidly. Thus, financial commitments must be made based upon the limited information provided by the seller while the purchase agreement cannot escrow for every contingency.
CPROP is developing a groundbreaking solution which leverages blockchain technology to make accessible all the important information associated with a commercial property that cannot typically be accessed on demand. Similar to the popular product Carfax®, which assists prospective buyers of used cars with complete vehicle histories, CPROP plans to capture selected data and information presently residing in disparate systems, both inside and outside the building, in a digital ledger on the blockchain creating unprecedented transparency and driving down contingent liability risk.
Due to inherent inefficiencies in today’s transactional real estate, transaction costs can reach 10% or more of the total transaction value and the time required to complete the process can be very long, even excluding the time required to agree on a transfer price. And due to the large sums of money involved, the potential financial downside associated with a flawed process, including post-closing property registration and mortgage documentation, is huge.
These pain points are especially evident in cross border transactions which can suffer from a lack of standardization, lack of transparency, mounds of paperwork, risk of fraud, errors in public records, and a host of logistical challenges associated with getting buyers and sellers together.
When all parties are unable to see where the various bits and pieces of a transaction stand at any point in time, communications are inefficient and critical path items can go unnoticed resulting in unnecessary delays
The buyer and seller may need to be in the same physical location to sign hard copies of closing documents creating potential logistical challenges and added cost for long-distance transactions
Buyers acquiring property long-distance need to find local service providers in whom they can trust to competently represent their interests
The reliance on hard copies leads to risk of documentation errors and a more time consuming, cumbersome and expensive closing process
The services provided by existing property portals are generally confined to providing listings and their market reach is limited to the extent they are not integrated with property portals in other geographies
The buyer may experience difficulty accessing and paying the purchase price in the seller’s currency of choice, or may wish to pay with crypto currency
A variety of documentation-related defects can invade a real estate transaction, whether introduced through malfeasance (i.e. fraud, tampering and corruption) or human error
There can be a heightened risk of misunderstanding among the parties due to the buyer’s unfamiliarity with, lack of proximity to, or inability to read or speak the language of the seller’s jurisdiction
1 Real estate agents and service providers will acquire CPROP tokens in payment of an annual Membership Fee ($100 value minimum) to gain access to the CPROP platform and have their profile listed. Tokens so received by CPROP will be placed in a Locked Wallet and removed from circulation. CPROP will facilitate the purchase of tokens from the exchange(s) to cover Membership Fees.
2 Upon a completed transaction, CPROP will offer incentive tokens to Buyers if they agree to engage CPROP to manage their newly acquired property. Tokens so received would be deposited into the Locked Wallet when used.
3 Buyers can receive incentive tokens for each user review they provide of their real estate agent and service providers. Buyers are free to hold or sell these tokens or use them for future membership or property management fees, eventually removing them from circulation.
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