Why won't Blockchain work?  Human error.

As a senior title examiner, I find errors in the chain of title all the time.  Even ones that the searchers don't pick up in their initial run sheets, but exist in the chain.

No proof of deaths for deceased, improperly indexed files, illegally transferred deeds, incomplete mortgages, foreclosures, bankruptcies, etc.

So, your file is only as good as the most recent examination with a good, experienced searcher and examiner.

Iowa is a good example of poorly executed title, with their title plants and state issued "insurance"  They RELY that all their information is 100%, however, I've examined title in Iowa and found that their infallible system did indeed contain errors - HUMAN errors such as indexing and taxes subdivided properties incorrectly, etc.

In NJ, we have a 10 year "treaty" between the underwriters for back policies.  Guess how often I find defects in the chain of title that were previously insured b/c the defects were not found.  Probably b/c an examiner "relied" on someone else's work to be correct.

If I'm sent 500 pages of search, I READ all 500 pages.

Blockchain in real estate would operate under the "assumption" that the prior searches and policies were 100% error free as to the chains.  Good luck with that.   It all comes down to mitigating the risk.

Until a chain is 100% error free, any defects have been discovered, corrected or at least identified to determine the risk, I don't see Blockchain being the industry leader.

Look how MERS was supposed to work, but in the end, the Counties still required assignments to be recorded since without the recording, there would be no way to index the mortgage assignment chains, say for the purpose of Foreclosure.

I wouldn't start panicking yet.  Just keep up to date on what is happening.  





to post a reply: login - or - register