As CEO and Principal Broker of Global Property Systems (GPS) and now also an Associate Broker with Keeler Family Realtors (KFR) in New Hampshire, I find myself wearing many hats, including that of an Election Official here in Laconia, NH.  Tomorrow evening, I'll be counting ballots—by hand, the old-fashioned way. It's election season here in the USA, and it baffles me that Blockchain technology, once touted as the indisputable leader for secure, transparent ballot counting, has been largely ignored. Blockchain was supposed to eliminate any possibility of finagling, providing a tamper-proof method for ensuring election integrity. So, what happened to that idea?

The reality is that blockchain voting technology has come a long way in recent years. It has made remarkable strides, evolving far beyond manual methods and addressing many of the initial concerns about its security and feasibility. Numerous successful trials, from West Virginia to Utah, have demonstrated that blockchain can be effectively used for voting, even in environments with high-security demands like elections involving military personnel or remote voters? (Built In) (New America).

Just as Blockchain technology could revolutionize elections by providing transparency, security, and accountability, it could prevent the issues currently threatening to unravel the real estate industry. I'll be speaking about this at the International MLS Forum in Milan next month—maybe, just maybe, someone will be listening this time? For years, I’ve been advocating for this change, and now I’m calling for the entire industry to evolve. The need has never been more urgent.

Let me be clear—this is not about Crypto or NFTs. Blockchain is often confused with Bitcoin, but they are not the same. While Bitcoin is a type of cryptocurrency, Blockchain is the underlying technology that enables secure, transparent transactions. Our focus here is on the benefits of Blockchain, not cryptocurrency.

Key Benefits of Blockchain

• Transparency: Blockchain creates an immutable ledger of all transactions, ensuring that every detail is visible and recorded. This level of transparency could have discouraged practices that are now under legal scrutiny.

• Decentralization: Unlike the current system, where a few associations control certain practices, blockchain operates on a decentralized network, preventing any single entity from manipulating the process. This decentralization could have avoided the issues that are now leading to lawsuits.

• Immutable Records: Blockchain’s unalterable records would have provided legal clarity and reduced disputes over agreements, potentially preventing costly legal battles.

• Smart Contracts: These self-executing contracts could have ensured terms are automatically enforced according to pre-agreed conditions, avoiding disputes and ensuring compliance with legal standards.

• Auditability: With blockchain, every transaction is recorded and auditable in real-time, allowing for continuous oversight and reducing the likelihood of practices that could be construed as anti-competitive.

• Reduced Reliance on Traditional Forms: By moving away from outdated methods, Blockchain could have offered a standardized yet customizable solution that evolves with industry needs and legal requirements.

• Enhanced Security: Blockchain’s cryptographic encryption and decentralized consensus mechanisms would have secured all transaction data, protecting against fraud and reducing legal challenges.

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It pains me that our associations are once again putting us in legal jeopardy. It’s about time the membership got savvy and stopped being led by the nose. The focus should no longer be on commission-sharing forms, which are no longer the primary issue. Recent changes now prevent real estate agents from displaying buyer agent fees on the Multiple Listing Service (MLS) to avoid conflicts of interest and promote fairer practices. (Marketplace) (NAR).

However, it’s already obvious that buyers do not want to pay their agents; they are saying, “If sellers want to sell their house, they should be the ones to pay the agent, not the buyer!” This reality is reshaping the landscape and bringing new concerns about fairness and transparency to the forefront. Buyers have often been indirectly covering agent fees through higher sale prices and rolled-up costs into their mortgages, which, under the new rules, may require more direct payments or more explicit negotiations. (Marketplace) (Tom Toole).

If you continue down this path, you're setting yourself up to be named in the next wave of class action lawsuits. This could mean huge legal bills, forced settlements, or even the bankruptcy of your business.

To protect yourself, consider rethinking how we approach compensation in our industry. Perhaps it's time to move toward more direct methods, where the seller pays the buyer's agent directly through the closing process or offers concessions to buyers to help with closing costs.

Ignoring these warnings could leave you with enormous legal expenses.

If you are a Realtor reading this, you need to share this information with your association leadership because they are steering you straight into a head-on collision.

I'm also wondering if the newly formed AREA will allow its members to integrate Blockchain into its offerings. I’ve reached out, but as of yet, I haven’t heard back from either NAR or AREA. Perhaps they need to be educated on how things are progressing in the world of honest transactions. It’s time we brought the real estate industry into the future, and Blockchain is the key to ensuring transparency, security, and accountability in our transactions.

I, for one, feel that it's the right time for NAR to offer its entire membership the ability to use blockchain, with the associated costs included in the fees we pay. Who knows? Maybe we'd all gain back the credibility this entire fiasco has cost us.