Residents of California may find that bitcoin is useful when making real estate transactions. In 2017, a home in Manhattan Beach valued at $3.23 million was purchased with 3,300 bitcoins. Those bitcoins are now valued at roughly $34 million. Proponents of using bitcoin to make real estate transactions say that it is faster and easier because there is no need for bank involvement.
However, bitcoin has been known for its volatile price swings and the fact that it is vulnerable to hackers. These issues could cause the value of bitcoin to plummet or for bitcoins to simply disappear without a trace. Banks may not give loans to those who want to make a deal in bitcoin while title and escrow companies may not accept them either. A government probe into the cryptocurrency may also make it harder to use bitcoin for future real estate deals.
Those who are planning on buying a home may be making one of the most important decisions of their lives. Therefore, it may be a good idea to consult with an attorney prior to closing on a deal to buy residential property. An attorney may be able to review the terms of the deal to ensure that a buyer has a clear understanding of his or her rights and obligations.
If an individual is planning on paying with a currency like bitcoin, it may be necessary to take steps to ensure that the transaction is secure. An attorney might add language that stipulates what happens if the transaction doesn't go through or if the value of that currency declines. This may work to help a real estate deal close in a timely manner while also helping a buyer to stay within his or her budget.