In the booming real estate market, positioned to escalate to an impressive $637.80 trillion by 2024, the need for efficient document verification has never been more critical. Residential real estate, dominating the market with an expected volume of $518.90 trillion in 2024, shows the crucial need for identity authentication protocols. As the sector anticipates a growth rate of 3.41% annually (CAGR 2024-2028), which leads to a market volume of US$729.40 trillion by 2028, the integration of innovative document verification practices will be essential to ensure the legitimacy and smooth execution of real estate transactions globally.
Let’s explore the complete document verification process in real estate and investigate the major use cases it proposes in meeting regulatory compliance.
What is Document Verification in Real Estate? Understand its Essence
Document verification in real estate involves the authentication of users’ credentials when they show interest in buying the property. It majorly involves the scrutinization of the identity papers, which shows the authentic credentials issued by the government officials. To find the legitimacy of customers, users must provide their essential identity information, such as proof of address, financial transactions, identification number, and social security credentials. In this advanced era, imposters create fake credentials and then utilize them for illegal gains, which ultimately leads to frauds such as money laundering and terror funding.
Use Cases of Digital Document Check in the Real Estate Industry
Verification of documents involves the scrutinization of identity papers, which are majorly issued by government officials. These authorized departments utilize machine learning protocols with the assistance of artificial intelligence, which executes operations by integrating practical algorithms. Thus, document verification online plays a significant role in detecting anomalies and counterfeits in real-time. The integration of global document verification has streamlined the major operation of the real-estate system by reporting fake entities to the relevant authorities. Document verification in the real estate industry has ensured the security measures which are essential for maintaining the reliability of the system. Some of the following use cases are covered in the real estate industry through document checks, which are given below:
CDD
Customer due diligence and enhanced due diligence are the significant protocols that can only be executed by document verification in the real estate industry. The complete scrutinization of the identity documents helps in finding the low, high and moderate-risk customers involved in the financial transactions procedures. High-risk customers are not allowed in real estate procedures because of their vast chances of executing money laundering or terror funding.
High-Risk Transactions
High risk transactions that are conducted by potential imposters leads to the money laundering procedures and ultimately become the reason for monetary losses. The document verification in the real estate ensures the authentication of individuals in real time. The property documents should be validated to ensure that it is coming from the legitimate entities.
Expanded Criminal Databases
Identity verification API partners with the recorded databases that hold the criminal records. It is scrutinized by these authorized boards for authenticating identities in real-time. This criminal history includes politically exposed persons, money launderers, terror funders, and cybercriminals. The onboarded customers are checked against these authorities for detecting fraudsters who are trying to become part of the real estate industry. The complete sanction list is checked to find out that onboarded customers have not been a part of any criminal activity currently or neither before.
Defined Compliance Measures
There are defined rules of identity verification and financial maintenance in each industry to maintain the reliability of the system. These defined rules are the legislative measures that ensure that onboarded identities should be legitimate and should not be involved in any type of illegality. It is being done by checking the previous financial records so that imposters do not become part of these authentic systems. To avoid any type of penalty within real estate, there should be proper document regulation in real estate.
The Bottom Line
Document verification in real estate has streamlined the operations of the industry by authenticating the entities involved in this system. To fortify the integrity of the system, users should have their validation proved to enhance the overall performance. Identity authentication in real estate mitigates the major concerns of monetary losses such as money laundering and terror funding. Real estate has huge potential in their industry that will not be damaged with time but will increase. Fraudsters have been exploiting this industry for so long. However, the regulatory authorities acquire this sector to regulate customer due diligence on the basis of their buyers and sellers. It will combat the chances of criminal exploitation within this sector.
