There is a need to change the ownership whenever there is a sale of any property. Title insurance protects from losses that may occur due to defects in the title chain of the property. However, not many people know about this.
Problems with the public record-keeping agencies
You have to visit a local office to view the records.
One can easily change or tamper with the document package.
It is a very tedious and time-consuming process to go through all the documents.
How the blockchain system helps title companies
Anytime and anywhere access
Records are digitized and placed in a secure blockchain system, meaning you can access documents from anywhere. You are only required to login to a secure blockchain system to access your digitized records.
A blockchain system allows users to check a record and confirm it before updating it in the block. Multiple copies are made once the file is placed in the blockchain system. The only way to change the record is to update it in all the blocks. This update is added as the next record under the previous one, making a list of files throughout the transaction.
It is very time-consuming to check transaction records in any public agency. In case there needs to be some change in ownership rights, it will sometimes take days and even weeks to make these changes. With the blockchain system, title insurance companies can check a record and apply changes within minutes. This way, title insurance companies can effortlessly handle multiple clients at once.
Secure and reliable
It is impossible to make any changes after adding a transaction record to the system. Security and reliability are some of the main benefits of a blockchain system. Documents are first converted to a secure hash and then added to the system. This hash value is unique, and you cannot tamper with it. If this hash changes, all the blocks have to update it in the system to keep it in sync. Any tampering with the record will be visible, therefore, making it secure and reliable.