RESSAS Services Inc. (CVE:RSS) announced Tuesday it has entered into an agreement with Real Estate Consortia Inc., a San Francisco-based blockchain company.
The deal means RESSAS will issue a first-to-market, patent-pending title token developed by Real Estate Consortia for every property in the United States and Canada.
The agreement was signed last week, and as part of it, RESAAS and Real Estate Consortia have engaged San Francisco based Investment Bank, US Capital Global, to raise up to US$7 million through convertible notes for the joint venture partnership.
"We are excited to enter a joint venture with Real Estate Consortia, and bring to market a compelling use of tokenization for the real estate sector," said chief executive officer, Tom Rossiter.
"We have become increasingly aware of opportunities within real estate for intelligent use of blockchain technology. We believe Real Estate Consortia's title token technology to be an accretive addition to our members, our business, and the entire real estate landscape across North America."
Revenues for NewCo will be generated via a virtual deal room, which runs on the RESAAS platform. For every home transacted in the "deal room," NewCo will receive a fee based on the commission generated from the transaction. Agents and clients involved will also earn a portion of the fee.
All profits generated through NewCo will be shared equally by RESAAS and Real Estate Consortia.
"Our team believes we've found a perfect partner to launch our patent-pending token technology to the North American real estate market with Resaas," said Teresa Grobecker, chief executive officer of Real Estate Consortia.
"Having built San Francisco's first real estate brokerage to accept Bitcoin, we have curated our token around keeping the Realtor as the hero in the transaction. This is the perfect application for blockchain technology, allowing anyone to backcheck and validate a property's history and provenance."
Through the use of blockchain technology, homeowners will be able to access the title token through their licensed real estate agent on the RESAAS platform.
The token will provide updates about the property title and recorded claims on the property. Homeowners will be able to add historical information about their property, allowing them to track the lifespan of their home. The more information clients add, the higher the property's provenance (title score), the more desirable, marketable, or better loan rate a consumer could receive.
RESAAS intends to initially offer this service to its real estate association and enterprise clients, before rolling out the service network-wide.
Shares of RESAAS were down 9.1% at C$0.30 on Tuesday.