• The legal situation makes the introduction of such a platform complicated – in Sweden as in Germany
• Experts can imagine a temporary solution for the near future
Platform from Sweden: Digitized processes can save 100 million euros annually
Buying a house via blockchain in a few days instead of several months – this is made possible by a project started in Sweden in 2017: Swedes can buy and sell real estate in a very short time using a specially created platform based on a private blockchain . The platform allows all involved devices to control the process. According to the information portal GodmodeTrader, defined users such as banks or the Swedish land registry office Lantmäteriet can easily approve the transactions. The forecast for savings through the digitized processes is around 100 million euros per year. Could such a blockchain solution also be of interest to Germany?
Digital cadastre is a good idea – but the legal situation is an obstacle
Experts say: In theory, a blockchain-based cadastre is not a bad idea – but in heavily regulated Germany, it is difficult to make it legally possible. It is conceivable to create registration records in NFT form, but the legal situation is not even clarified for art NFT. So before entire homes can be acquired as NFTs, it is imperative to close the ownership gaps, according to GodmodeTrader. In addition, it is firmly established in the law that a notary office must be involved in real estate transactions for the certification (§ 311b BGB) – buyers also receive detailed advice at the notary office and are informed of possible disadvantages of the transaction. . Timothy Becker from Berlin’s technology agency Turbine Kreuzberg told Haufe that it is not so easy to do without this in Germany.
Due to the legal situation, the digital cadastre was hardly used in Sweden either and “never integrated into the cadastral production system”, a spokesman for the Swedish authority confirms to GodmodeTrader. It must be emphasized that the problem was not the technology but the legal situation.
Experts see no way to rule out going to the notary’s office
According to Becker, a blockchain-based cadastre could work as follows: “For each property, a unique record is created in the form of an NFT (non-fungible token) on the blockchain. The person holding the token is the owner of the property. If a token is assigned to a transferor to other owners, the ownership structure changes in a verifiable manner. ” Haufe writes that properties with a wide range of individual conditions are particularly predetermined for a decentralized cadastre. As well as Professor Dr. Maximilian Zimmer, notary and honorary professor of business law at the Harz University of Applied Sciences in Wernigerode, he believes that a temporary solution is best in Germany given the legal situation. That means: Blockchain yes, but not without a notary.
But as long as the legal situation around the subject of NFTs remains unclear, a temporary solution will remain a thing of the future.
Blockchain-based real estate tokens already exist
However, what already exists are investment tokens (also: property tokens), which can be used to invest in financing buildings and then receive regular dividends. In addition, the Electronic Securities Act (eWpG) was passed in 2021, representing a further step towards the integration of blockchain in various investment areas.
Image sources: Alexander Supertramp / shutterstock.com, Prathankarnpap / shutterstock.com