Many buyers would like to purchase — and sellers would like to sell — real estate in Florida using cryptocurrencies due to liquidity issues of fiat currencies in other countries. There's been a rise in the value of cryptocurrencies such as Bitcoin, Ethereum and more, leading to an increase in popularity for these currencies.Cryptocurrency is used for many different transactions, including selling or buying a home. There are more than 100,000 merchants worldwide that use cryptocurrency as payment for products and services. That usage has also translated to real estate closings as more people use cryptocurrencies as the sole medium for exchange in the buying and selling process.
You have two options when it comes to bitcoin real estate closings. First, as a buyer, you can send Bitcoin or another cryptocurrency directly to the seller's digital wallet. While this process seems simple, there are many potential issues with a direct payment, including the following:There are additional costs and time to both you and the seller as you pay attorney fees and figure out how to complete the transfer.
- Both you and the person selling you the home take on additional risk and liability.
- The seller could choose not to deliver the deed to you, or they could deliver the deed and not receive your cryptocurrency payment.
- Vendors such as the county, state, banks, real estate brokers and more don't accept cryptocurrencies such as Bitcoin and Ethereum. This issue gets confusing when you consider how to record the deed, how to pay taxes, how to pay loans off to lenders and real estate commissions.
- When you're buying a home in Florida, you have to consider who will prepare the documents to transfer the title and comply with Florida statutes and title standards.
- You as a buyer assume liens or encumbrances against the property as well as any potential title defects since you can't obtain title insurance per s. 690-186.08 of the Florida administrative code.
- There are additional costs and time to both you and the seller as you pay attorney fees and figure out how to complete the transfer.
These additional costs still occur during direct transfers. You'll need cash to cover certain expenses since some vendors and government entities don't accept cryptocurrencies.
Instead of trying to go through a direct transfer, work with Guaranteed Florida Title, Escrow & Abstract, Inc. Our services address and manage the pitfalls mentioned above. We'll help take care of everything from transferring the title to making sure you get the deed, and we have proven strategies and procedures to make sure the process goes as smoothly as possible.
Give us a call now at 954-566-6000, or visit our contact page to get more information on the best way to use cryptocurrencies such as Bitcoin and Ethereum for your real estate transactions. You can also request a quote for our title insurance and closing services.