Brazil has witnessed their maiden real estate deal to be completely transacted using blockchain technology facilitated by construction giant Cyrela and startup Growth Tech under a project termed Notary Ledgers which is specifically designed to allow participants to digitally request and track legal services.
An IBM blockchain was used for the transaction and according to Growth Tech, such technology not only makes the whole process faster for the client but can also reduce monthly costs for the law firms involved by up to 55%.
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Headquarted in Sao Paulo, Cyrela are viewed as Brazil’s largest homebuilder and real estate company when judged by revenue and market value with operations in 55 cities across Brazil and Argentina.
Speaking to BizBrazil, Cyrela’s Legal Director Rafaella Carvalho said the company has “…the will to drive digital transformation in the sector” and they “…have been looking for Blockchain applications for the legal market for sometime now. The completion of this transaction reinforces how we are open to using technology to improve the real estate business environment in the country.”
To facilitate the transaction, Cyrela collaborated with Growth Tech who operate within the legal environment and seek to cut a path through the complex legislation, regulation and compliance maze by providing technology-based solutions.
Hugo Pierre, CEO of Growth Tech, told BizBrazil that he believed Brazilian notary offices needed to migrate to a blockchain-based service because “A digitally signed document in our platform will have the same validity as a manually signed in a physical notary, because the validations are also done by notary public in the Notary Ledgers Network.”
According to Pierre, such a move would “…help prevent fraud and improve the delivery time of the services.”
Brazil has previously been identified as a country that would benefit from developing a blockchain-based real estate platform that would enable legaltechs such as Growth Tech to thrive and in 2017 the Brazilian Association of Lawtechs and Legaltechs (AB2L) was founded to connect key players such as fintechs, legal departments and solicitors.
With around 140 members AB2L are actively looking to harness automation and blockchain-based smart contracts to improve the management of legal documentation.
Elements of Brazil’s political structure appear to be in alignment with AB2L aims and last month a draft policy, called the Digital Provision of Public Services in Public Administration – Digital Government, was filed to implement the use of AI and blockchain technologies in the public sector.