With the constant change and advance in technology, and being that millennials have all the information, understand how every dollar in their pocket is indebted, and realize that their own […]
Owning a real estate property represents one of the biggest financial commitments you will incur. Once you have closed on the purchase, your property will become an important portion of […]
With the constant change and advance in technology, and being that millennials have all the information, understand how every dollar in their pocket is indebted, and realize that their own national currency is indebted to an-already indebted US Dollar, enthusiasts see it as an alternative way of paying for regular things, and an option to acquire their home.
Maybe you have heard about cryptocurrencies, maybe you haven’t, but we are confident that you already have heard about Bitcoin and other cryptocurrencies. With cryptocurrencies on the rise, it is time to get informed and learn some basic concepts that relate with the currency and the possibilities it offers.
What is Cryptocurrency?
It is a digital currency. It is a medium of exchange, created and stored electronically in a “blockchain” using encryption techniques to control the creation of monetary units, and verify the transfer of funds. It emerged as a side product created on 2008, by Satoshi Nakamoto “A Peer-to-Peer Electronic Cash System .” This creation found a way to build a decentralized digital cash system.
What is Blockchain?
It is the technology that establishes the digital currency. It allows digital information to be distributed, but not copied, meaning that each portion of the data can only have one owner. It is described as a “digital ledger” in a network. The records are public and exits simultaneously in millions of places, which makes it harder to hack. The proponents of the blockchain call it “a trustworthy system in a trustless world”.
The list of cryptocurrencies is long, some of them are certainly more common, and they started to make an impression in real estate, so for the effects of this article, we’ll focus our attention on Bitcoin.
What is Bitcoin?
It is the first and most famous digital currency, it works without a bank or intermediary. It has created wealth for investors, and some had cashed out and used it to buy their home. Some real estate sellers are willing to accept Bitcoin as payment.
The marked evolution on technology, and the influence it has on the way business are operated and transactions are handled everyday, the cryptocurrency has a gigantic play field in the real estate market. In Florida, some real estate transactions have already closed using Bitcoin. A real estate transaction will be conducted for the most part the same as a cash transaction; however, Natalia Karayaneva, CEO of real estate startup Propy highlights “The main issue we’ve experienced is exchanging large amounts because sellers, very often, want to get paid in fiat,” she explains. “When payment is crypto to crypto, large amounts have to be sent in smaller portions as transactions are not reversible. This is because sending large amounts of crypto is still a risky process e.g. if a hacker swaps a public address, the transaction is not reversible.” For some sellers, it may be difficult feel confident to accept Bitcoin; in regards of the buyers, you may have to “sweeten the pot” for them to accept the cryptocurrency.
Sellers and buyers considering Bitcoin as a payment method, should first look at the pros and cons before moving forward.
Pros and Cons of Buying and Selling Property with Bitcoin
Buyers and Sellers
The Pros: An international currency, independent of a country or central bank, for a globalized economy, with the equivalent of cash, it provides:
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The Cons: Bitcoins advocates are hoarding it, for what they believe is hyperinflation, as they don’t trust the Federal government, neither the central banks.
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Sellers
The Pros
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The Cons
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Buyers
The Pros
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The Cons
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As for what to expect for Bitcoin in 2019, it is uncertain, as the last two quarters of 2018 the cryptocurrency had a tumbled. The magic about the coin, was that it has a fixed supply, which suppose to prevent manipulation and inflation. We’ll have to wait to see what happens.
Contact us with any questions about our real estate closing services by phone (844) 321-6168 or by email titleinfo@titlepartnersfl.com.
Owning a real estate property represents one of the biggest financial commitments you will incur. Once you have closed on the purchase, your property will become an important portion of your wealth. The closing process implies several tasks, and a series of steps that involves every party along the way: the real estate agent, the mortgage broker, the seller, the buyer, the inspector, and sometimes others may take part.
In Florida, once the seller and the buyer are in contract, typically, every step of the purchase process is supervised and facilitated by a real estate attorney or a title company which will prepare all paperwork related to transferring the property and emitting the new title to the buyer. Also, Florida Department of Financial Services controls the real estate transactions when an escrow fund has been created for the closing and when title insurance has been purchased.
What is a title ?
It is a bundle of rights, and serves as evidence of ownership of the real estate, it represents your legal rights in the property’s possession, use, control, and dispossession. It includes all previous ownerships, uses, and transfers.
Before the property is legally transferred to the new owner, a title search must be performed to make sure the title is free and secures ownership. Even the most thorough search of the county public records may not reveal certain title defects on the property. For this reason, it is recommended to get title insurance, to protect against the possibility of future loss, should a challenge arise.
What is an owner title insurance?
It is an insurance policy that protects the homebuyer for the full value of the property and from the following challenges that may occur in previous ownership:
How long does the owner’s title coverage last?
An owner’s title policy remain in force as long as you or your heirs have an interest in the property. The title insurance will protect the title for the buyer. Before the emission of the title insurance policy, yout title agent will check and review any defects such as unpaid taxes, a lien filed by a contractor, an assessment or any other title defect, a thorough review will be made. Without the protection of the title insurance, your investment is in risk.
How title insurance protects the owner?
The title insurance protects the owner from claims or rights that another party may have for unsettled claims from the previous property owners, prior the actual purchase.
Why homeowners should get the title insurance?
Title insurance is a mandatory part of the mortgage process if the purchase is under a mortgage, the lender will require the home buyer to pay for lender’s title insurance as part of the mortgage closing costs. If anything wrong appears with the title of the property, the title insurance pays the policyholder for the cost of perfecting your title rights, or provides compensation if you lose the property altogether. Unfortunate to say, the record of deeds doesn’t guarantee accuracy in its records-keeping.
The cost of the title insurance will depend on the amount of the loan, the down payment and credit score of the buyer. Remember the title policy never expires, and protects the buyer until he holds ownership of that property.
Are you or your clients looking to buy or sell property? Choose to work with an attorney owned and operated title company that can offer the best arrangements, maximum protection, and reasonable rates. Title Partners of Florida offers high quality title company services and count with years of experience. Call us today.
Buying a Home with Bitcoin and other Cryptocurrencies?
UncategorizedWith the constant change and advance in technology, and being that millennials have all the information, understand how every dollar in their pocket is indebted, and realize that their own […]
Why Real Estate Buyers Need Title Insurance in Florida
UncategorizedOwning a real estate property represents one of the biggest financial commitments you will incur. Once you have closed on the purchase, your property will become an important portion of […]