Glen Oaks Escrow, one of the largest independent escrow companies in Southern California, will now accept cryptocurrency. The decision was made to match the demand of the increasing number of listed homes that accept Bitcoin payments.
Processing The Payments With BitPay
Glen Oaks Escrow will integrate BitPay, a Bitcoin payment service provider, to be able to accept payments in Bitcoin. BitPay will function as the payment processor in all transactions.
The role of BitPay in all cryptocurrency transactions is to verify the funds being used in payments, similar to a bank’s function during transactions.
After BitPay verifies a transaction, Glen Oaks would send out an invoice to the payer, much like wire instructions are sent. The payer is then given 15 minutes to complete the payment with Bitcoin or this payment option will expire.
The crypto funds then go to escrow through BitPay and the function of BitPay becomes that of a currency converter, changing the cryptocurrency into cash and wiring it into the escrow account.
As it takes the Bitcoin and converts it into cash for the seller, the seller will never see that they were paid with Bitcoin; all they will see is the cash.
The Growing Need For Cryptocurrency In Real Estate
There has been an upswing in houses being sold for bitcoins, ever since a lofty sale of a Lake Tahoe home in 2014. The home was sold for 2,739 BTC, the equivalent of $1.6 million during the time. This has influenced a large number of real estate residential properties to be listed with Bitcoin payments in the following years.
Joe Curtis, the COO of Glen Oaks Escrow, has noticed the surge of homes listed on the market that accept cryptocurrency. He predicts that the use of cryptocurrency will rise in the real estate marketplace.
The COO said:
Increasingly, blockchain and cryptocurrencies have the potential to become a bigger part of real estate transactions, and this is one step to be ahead of the curve and enable transactions to happen through this vehicle.
Piper Moretti, the Licensed Realtor at Christie’s International Luxury Real Estate, Blockchain Advisor and Crypto Transaction Expert is enthusiastic about the rise of cryptocurrency payments in real estate, as she believes these crypto transactions create a better escrow experience for all parties involved.
The Licensed Realtor said:
This is great news for buyers and sellers in the Blockchain space. Cryptocurrency transactions go much smoother when escrow is dialed into this cutting-edge way of purchasing property. I am so excited to see this new payment method coming to fruition because two years ago I would try to talk to any escrow company who would listen and now that it’s become more of a thing that people are realizing that they need to take a look at it.
Furthermore, the “Bitcoin’s Future in Real Estate” article was published in REALTOR magazine in September 2016, which acknowledged the rise of Bitcoin in the industry. Real estate agents, brokerages, title companies, appraisers and others in the industry are working with Bitcoin in the hopes of landing more business opportunities.
In addition, according to a Los Angeles Times article published earlier in 2018, there were several Southern California real estate brokerages that announced they would also begin accepting Bitcoin payments for homes on the market.
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