In January 2014, Vista Abstract proudly became the first title company in the United States to accept Bitcoin as currency for the purchase of real estate.
There are news stories of real estate brokers announcing that they accept Bitcoin. There are even sellers that have marketed that they will take Bitcoin in an effort to attract more buyers. Neither of these parties can help a buyer purchase a property with Bitcoin. To understand this, you have to understand some fundamentals about the system for purchasing real estate in the US.
For the protection of a buyer and for the purpose of keeping records clear and consistent, title companies are trusted as the intermediary. Of course, to be a title company there are many licensing and bonding requirements as well as the backing of underwriters and accountability. When buying real estate of any type, the deed must be recorded quickly, this is the legal record of ownership. The title company insures that this will happen and insures that the buyer is buying the property free and clear of any prior liens, judgments, mortgages or anything that would affect ownership or net value.
To insure that this happens, the title company is always the party that handles and disburses any money:
We pay off any mortgages of the seller, including valid liens or judgments
We pay the real estate broker’s commission
We pay the recording fees
We pay any taxes due including transfer taxes, recording taxes, mortgage taxes and property taxes
We pay the seller his or her proceeds
Sellers and real estate brokers don’t receive money from buyers, they receive money from title companies. Buyers don’t pay sellers and real estate brokers, they pay title companies. A real estate broker can only accept commissions, so if the title company doesn’t accept your currency as a buyer, you’re out of luck.
By working with Bitcoin payment processors, we can insure that your transaction will settle the same day and safeguard against any market pricing fluctuations. At Vista Abstract, we are in the risk business. We’re careful to manage transactions so that none of the parties are at risk and we can safely insure free ownership and enjoyment of property to our buyers. Our management of real estate transactions using Bitcoin and other Crypto-currency is handled with the utmost care. We have made all tools available to us at this early time in the development of this new technology to insure a secure transaction for all.
Vista Abstract Inc.
3901B Main Street, Suite 303
Philadelphia, PA 19127