I learn most of life's lessons the hard way, including if we should accept Bitcoin or not. Recently we received a contract for 1.5 million dollars where the buyer wanted to use Bitcoin as his method of payment. This prompted us to do a lot of research on accepting Bitcoin.
Our first phone call was to our underwriter, who told us no, they wouldn't insure a bitcoin transaction. About a week later I read an article from ALTA that talked about Title Companies accepting bitcoin and it prompted me to research it further.
I went about searching Google and really didn't find a lot of information. In the process we learned how to accept Bitcoin and convert it to cash before closing. In a nutshell, the problem of accepting Bitcoin was solved. We are now signed up with a company that converts Bitcoin to cash.
So, as a real estate agent what do you need to know about this process? Essentially nothing. You can write your contract as you normally would. If the buyer is getting a mortgage, we can convert escrow deposits and down payments before closing and provide verification to mortgage lender. I would prepare for a longer than usual underwriting time from your mortgage lender. Sourcing and Seasoning Bitcoin might be a challenge for some lenders. Other than that, it's a simple cash transaction.
The only thing really important to note, the buyer will have to have their Bitcoin converted 2 days prior to closing and disbursement of funds.
If you have questions, give us a call at 239-334-3321 or send us an email at firstname.lastname@example.org We will see you at the closing table!