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Buying a Home with Bitcoin and other Cryptocurrencies?

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 […]

February 18, 2019/0 Comments/by support_8dba

Why Real Estate Buyers Need Title Insurance in Florida

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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 involve every party along the way: the real estate agent, the […]

January 10, 2019/0 Comments/by support_8dba

Buying a Home with Bitcoin and other Cryptocurrencies?

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February 18, 2019/0 Comments/by support_8dba

Why Real Estate Buyers Need Title Insurance in Florida

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January 10, 2019/0 Comments/by support_8dba

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Buying a Home with Bitcoin and other Cryptocurrencies?

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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 to 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 in 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 exist 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 homes. Some real estate sellers are willing to accept Bitcoin as payment.

With the marked evolution in technology, and the influence it has on the way businesses are operated and transactions are handled every day, cryptocurrency has a gigantic playfield 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 to 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:

Anonymity to its holders
Security from fraud and theft
No thirds parties needed
It appeals to younger and international buyers

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.

Tax calculation could be big exasperating
Inability to verify the other person trustworthiness

Sellers

The Pros

- Faster option for transferring funds
- Transaction can’t be reversed
- Wider audience
Diversification of the investmest

The Cons

Potential losses due to volatility
Learning curve for the less tech-savvy

Buyers

The Pros

Protection from inflation
Instant payment can be made to anyone, anywhere in the globe
Lower fees
Could miss out on unprecedented appreciation of the coin

The Cons

Limit number of sellers willing to accept the crypto coin
Could affect the trust of the buyer to be able to make payments if the market crashes

As for what to expect for Bitcoin in 2019, it is uncertain, as the last two quarters of 2018 the cryptocurrency had tumbled. The magic about the coin was that it has a fixed supply, which is supposed 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 (305) 865-5718 or by email info@elitetitleagencyfl.com.

February 18, 2019/0 Comments/by support_8dba

Why Real Estate Buyers Need Title Insurance in Florida

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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, the 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 the 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 ownership, 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:

Mistakes in the recording of legal documents,
Forged deeds, releases or wills,
Undisclosed or missing heirs, including spouses,
Deeds by persons of unsound mind,
Deeds by minors,
Deeds executed under an invalid or expired power of attorney,
Liens for unpaid taxes, and
Fraud.

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, your 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 at 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 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 the 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 the 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 a property? Choose to work with an attorney owned and operated title company that can offer the best arrangements, maximum protection, and reasonable rates. Elite Ocean View Title Agency offers high-quality title company services and counts on years of experience. Call us today.

January 10, 2019/0 Comments/by support_8dba

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