A new proptech innovation will allow residential tenancy agreements to be executed as digital smart contracts in Queensland by the end of this year. 

The Real Estate Institute of Queensland has partnered with technology firm Igloo to create the new generation tenancy agreement product, available via the Institute’s Realworks form generation software. 

REIQ General Manager Josh Callaghan said the product carried benefits for all parties involved in the agreement by providing more transparency and enabling new functions that can benefit everyone. 

At a glance:

• The Real Estate Institute of Queensland has partnered with technology firm Igloo to create digital tenancy agreements.
• The proptech innovation will allow residential tenancy agreements to be executed as digital smart contracts in Queensland by the end of this year.
• The new contracts will use blockchain technology to create a simple and secure transaction for each tenancy agreement. 

“All parties will have visibility over the contract at any time from the palm of their hand," he said.

"By executing as a smart contract, we’re also able to build out the functionality to handle payments of bond and rent, plus facilitate other activities related to the property such as routine inspections and maintenance.

“Since the inception of smart contracts, their application to real estate contracts seemed obvious to me.

"We were very fortunate to discover an Australian based startup that also shared that vision.” 

Igloo founder and CEO Jeremy Hastings said a partnership with the REIQ was the marriage of opportunity for the two organisations whose shared vision and values led to a really meaningful outcome. 

“As a startup, we knew that our world-leading technology could vastly improve the way that people are connected with property, but we needed an established partner to take it to market,” he said.

“The REIQ not only had the most widely used forms product in the state, it was also open to challenging the status quo – an essential element for working with us to drive value back into the tenancy process.” 

Mr Callaghan said the new smart contracts would use blockchain technology to create a simple and secure transaction for each tenancy agreement that would leverage the benefits of the technology as an irrefutable source of truth. 

“Most people have heard about blockchain in the context of Bitcoin, which is somewhat unfortunate as the technology has applications for every sector," he said.

"Smart contracts, in particular, are clearly the way of the future in a form of law that has relied on a hand-written signature for literally thousands of years.

“At its simplest, a smart contract is a digital contract that can live beyond its initial execution by facilitating transactions and giving all parties a central record of what has happened during the tenancy.” 

Similar to this:

What I learned from the Proptech Summit

REIQ changes Constitution, signifying drive for diversity

Why the real estate industry has reached a 'technology intersection'