Keeping agents “out of orange jumpsuits”: 3 tips on blockchain

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For years, the impact of blockchain on real estate has been the subject of speculation and confusion in much of the industry.

But one company is acting on the assumption that a transition to a fully blockchain-based financial system for conducting home transactions could come sooner than some are ready for, and is preparing a data infrastructure that can support this kind of radical change in the industry.

Two Real Estate Consortia executives — CEO Teresa Grobecker and COO Sheila Fejeran — made their case Friday to an audience of real estate agents at Inman Connect Las Vegas.

Here were some of the big takeaways from their presentation.

They believe the nation’s transition to a new digital currency is inevitable.

For months, the US central bank has been pushing the idea of ​​creating a new digital currency.

In a March executive order, President Joe Biden asked the government to look into the matter, and placed “urgency” on research and development for the possible new currency.

The blockchain community has followed this development with interest. Some see this so-called “Fedcoin” as a potential government-backed threat to existing cryptoassets, such as Bitcoin.

Others like Grobecker are bracing for the possibility that a new digital currency will have permanent consequences for how the economy does business — including the real estate industry.

And while the prospects for approval of a new digital currency remain unclear – no proposal has received formal approval – Grobecker is convinced that it’s only a matter of time before Fedcoin becomes a reality.

“What you really need to know, whether you like blockchain or you hate it, is that when Fedcoin comes, all of our transactions are on the blockchain,” Grobecker said. “So it’s a matter of adapting to this, adopting this as your business practice so that we’re ready to serve our customers when this big transformation happens. And it’s here today.”

They promise to keep the agent at the center.

If the market goes through such a shift, Consortia executives have promised for years that their platform will aim to keep the agent at the center of the real estate transaction.

This is a topic of much conversation in the crypto community, which historically has looked at the intermediary as an anathema.

But in a version of events where every real estate transaction is recorded on distributed blockchains, the agent would be necessary for all the reasons they are today, Grobecker argued.

Consortia have gone so far as to hardcode the agent into their blockchain processes, preserving a place for them in the blockchain’s immutable record, Grobecker said.

“Obviously, consumer protection is the No. 1 goal, but after that goal is reached, our commitment to you and the industry is that the agents and brokerages will be at the center of this, serving consumers,” Fejeran said.

There is considerable risk for agents carrying out NFT transactions.

Because blockchain assets are regulated differently than typical real estate transactions, the agent is also exposed to unknown legal risks, Fejeran said.

“What most people don’t realize, sitting in this room, is that when you start to act like selling housing as NFTs, you’re actually crossing a line into what’s considered SEC guidelines or rules,” said she.

To that end, the Consortia has developed educational materials designed to keep agents “out of their orange jumpsuits” if they venture into this area, Fejeran said.

Email Daniel Houston