For any kind of property, it is important to have complete and immutable records of ownership. Doing proper KYC to properly identify the current owner is an integral part of this process.
Records can be used to:
• prevent fraudulent sales
• verify ownership is properly transferred
• resolve disputes of ownership
• protect property owner rights
Currently, people need to rely on a trusted third-party that is responsible for keeping track of ownership information. These records can be lost or even improperly changed without the owner’s knowledge.
Having an easily accessible verifiable public ledger of all pertinent land registries is critical for real estate professionals and title companies involved in resale.
Current records kept by trusted third parties are presumed to be reliable and accurate but actually they are fraught with human errors and susceptible to physical damage and loss.
Since records on the block chain cannot be tampered with it would significantly help in reduction of fraud.
When an owner needs to be identified the entire transaction history for the property can be brought up and verified, the person claiming ownership of the property can be verified utilizing the current owners private key.
If this key is lost or if the legal system needs to override ownership than a designated trusted third-party would be able to verify ownership.