Land registration refers to a system whereby a government entity records ownership and land-related rights. Dobhal and Regan (2016) stated that outdated land registry systems can cause delays in ownership verification, slow down legitimate transactions, and enable land misappropriation. 70% of the world population lacks access to land titles, according to World Bank. For citizens, the status of land rights can affect their access to economic opportunities. Land ownership records are essential for governments to collect taxes, provide services, and establish territorial authority. Land rights are necessary to promote economic growth, address economic inequalities, alleviate conflict management, and support local governance processes.
Reliable land ownership records increase property values and reduce lender risk. In most developing countries, land records are kept on paper in a centralised location. This paper-based system is cumbersome to access and maintain and is vulnerable to natural or manufactured disasters. Thus, government agencies in these countries are exploring ways to digitize land records to reduce the vulnerability of single-copy paper-based titles. This would increase the land registration system’s reliability, authenticity, and transparency.
Multiple stakeholders are involved in land registration, such as landowners, government agencies, and financial institutions. This makes the process a complex one. All the parties need to trust the system that keeps track of land ownership and the legality of the registered title. Although property information varies by country and legal jurisdiction, the idea is to provide a system for recording ownership titles and facilitating the legal transference of land property rights. This system should potentially increase the transparency associated with making records publicly available in a secure environment, reducing fraud and helping resolve ownership disputes. Hence, the idea of digitization of land records using Blockchain Technology.
Many Blockchain startups have been working in line with this idea of land digitization. In addition to digitization, they also take ownership of land to be more affordable. Through the DeFi platform and NFTs, investors have the chance of purchasing a small piece of more extensive land area. LandOrc, on the other hand, is not into digitizing land and selling them through the DeFi platform. They are a lending platform for property developers.
Digitization of Land Title by LandOrc
LandOrc provides greater transparency to land titles by tokenizing their ownership of land or property titles through the issuance of Land Non-Fungible Tokens (“LandNFT”) to facilitate digital transactions, including the ability to use the title as collateral for raising funding.
LandOrc works with legal counsels, professional valuers and relevant local entities to authenticate ownership, value assessment, and all other compliance requirements for respective jurisdiction for each LandNFT. This value assessment process is done by a minimum of 3 independent valuers and lawyers to determine a consensus valuation range. Investors who buy LORC tokens will be able to check the LandNFT, which is the developer’s collateral and stake their LORC for a specified period to get returns.
LandOrc platform also enables the storage of multiple offline data points like GPS enabled visuals, vicinity analysis of the land based on location data, and the land value assessment. Data management of the NFT is synchronized to an IPFS (InterPlanetary File System) database via referral key. LandNFT is used in facilitating the process of collateralization under LorcFinancing.
LandOrc would enable real estate developers to gain access to a global capital marketplace and borderless crypto ecosystem. This would allow them to secure financing at a comparatively lower interest than their domestic markets. It will be without costly fees, slow processes, and restrictive conditions typical of mainstream financing options like banking loans. This is, indeed, an emerging trend in Real Estate.
At the time of writing LandOrc’s private sale is going on and. You can go through the following link to purchase your limited LORC tokens that are selling fast: https://landorc.io/private-sale.html
Dobhal, A., and Regan, M. 2016. “Immutability and Auditability: The Critical Elements in Property Rights Registries.” Annual World Bank conference on land and property.: Annual World Bank conference on land and property.
http://www.documents.worldbank.org/curated/e n/270331513854675950 Registering-property-using-information-to-curb-corruption