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Smart Contracts in Real Estate

Smart contracts are self-executing programs that automatically enforce the terms of an agreement when predefined conditions are met.

How Smart Contracts Work​

sequenceDiagram
    participant Buyer
    participant Smart Contract
    participant Escrow
    participant Seller
    
    Buyer->>Smart Contract: Deposit funds
    Smart Contract->>Escrow: Hold in escrow
    Note over Smart Contract: Conditions checked
    Smart Contract-->>Smart Contract: Appraisal ✓
    Smart Contract-->>Smart Contract: Title Clear ✓
    Smart Contract-->>Smart Contract: Inspection ✓
    Smart Contract->>Seller: Release funds
    Smart Contract->>Buyer: Transfer title

Real Estate Use Cases​

Escrow Automation​

Traditional escrow:

  • Escrow agent holds funds
  • Manual verification of conditions
  • 3-5 business days to release
  • $500-2,000 in fees

Smart contract escrow:

  • Code holds funds
  • Automatic condition verification
  • Instant release when conditions met
  • $10-50 in gas fees

Rental Payments​

// Simplified rental contract
contract RentalAgreement {
    address tenant;
    address landlord;
    uint256 monthlyRent;
    
    function payRent() public {
        // Automatically:
        // 1. Deduct from tenant wallet
        // 2. Pay landlord
        // 3. Record payment
        // 4. Update lease status
    }
}

Loan Servicing​

Smart contracts can automatically:

  • Collect monthly payments
  • Calculate interest
  • Apply to principal
  • Trigger default notices
  • Release liens on payoff

Benefits​

For Borrowers​

  • Faster closings - No waiting for manual approvals
  • Lower costs - Fewer intermediaries
  • Transparency - See exactly where funds are

For Lenders​

  • Reduced risk - Automated covenant monitoring
  • Lower servicing costs - Self-executing payments
  • Better data - On-chain loan performance

For Title Companies​

  • Instant verification - On-chain ownership records
  • Reduced fraud - Immutable history
  • Automated insurance - Smart policy triggers

Current Limitations​

  1. Legal recognition - Not all jurisdictions recognize smart contracts
  2. Oracle problem - Connecting real-world events to blockchain
  3. Immutability - Hard to fix bugs once deployed
  4. Complexity - Requires technical expertise

MoneyMatcher Integration​

We're implementing smart contracts for:

  • Phase 1: Escrow deposits and releases
  • Phase 2: Automated loan matching and funding
  • Phase 3: Full transaction lifecycle on-chain

Getting Started​

Interested in using smart contracts for your deals?

  1. Create a MoneyMatcher account
  2. Complete verification for crypto features
  3. Access beta smart contract escrow

Smart contract features are currently in beta. Terms and availability subject to change.