Quote from: nelisky on May 06, 2013, 04:38:45 PM

Quote from: memvola on May 06, 2013, 04:34:14 PM

It might not be any harder than doing it without Bitcoin. Instead of issuing a cheque in the name of the notary (potential technical troubles, high fees, etc.) or making a wire transfer (assuming notaries work that way in Germany), you will mail in the required secrets. Assuming there is a foolproof way of making it work, that is.

That is exactly where a BTC escrow comes in. If you write a cheque you know the money is with you, and the buyer knows they have something to get to the money.

With BTC I can give you my private key but there's no knowing when you move the coins using that key and there is nothing I can do about it. Also, you might close the deal and then I move the coins myself (we both have the private key) and there's nothing you can do about it. With escrow none of us holds the private key, and we both have some recourse if something goes wrong (granted, it depends on how much one can trust the escrow). In the end, escrow service is the cheque in normal currency.

I'm still failing to see the usefulness here. Maybe I am not explaining myself fully, so I will try harder.

This is how a usual property sale goes, whenever I have done one. I fail to see the difference here between BTC, GBP JPY or brass thumbtacks.

1. buyer makes 'offer to buy'. At the close of this auction, lets take that as the buyers 'offer to buy'.

2. Now this might be the bit that confuses bitcoin users- The buyer and seller, before any money changes hands, sign 'purchase and sale contracts' with their legal names, passports etc and this information is sent to the lawyer in germany. The seller signs a document saying that s/he accepts to sell the property to the buyer for a euro, a bitcoin or a thumbtack. This becomes known as the 'acceptance' and once sold is IRREVOKABLE by the buyer. It is a legal document. I understand that bitcoin is an anonymous currency, and hence when you are buying something with no title that you would want security but property has security of title. Anyway onto step 3.

3. Once the notary has received offer to buy and offer to sell, he will start the property transfer process. Then there are two options, advance purchase and post confirmation purchase.

Advance purchase: buyer pays the money to the seller and the seller issues a certificate of funds received, clearly marked and signed in front of a lawyer that 'all monies are paid and nothing is outstanding' which is sent to the notary. This means you effectively from that day have a 100% titular mortgage on the property which can be put on the act II (encumbrances) register in the german land registry. Advance purchases are not advisable in situations such as denkmalschutz properties, properties with encumberances (mortgages) or properties for which first right purchase can be made (historical properties, properties in an area of redvelopment IE a highway is going through, the government has first right of purchase)

Post confirmation purchase: a post confirmation purchase is where the notary checks all title act I and act II registrations, and pre registers the buyer in the register. The notary then issues a letter to both parties saying 'now is the time for payment' and once seller confirms payment is received, issues again said certificate of funds and the property is transfered.

At any stage after the purchase and sale agreement is signed if the seller 'runs off' with the money (and leaves his house behind, not exactly like you can put it in a bag and take it with you when you run away) the buyer can 'foreclose' on the act II with the purchase and sale agreement. So would become owner anyway. Before said contracts are exchanged, no money changes hands (except for usually a small deposit or something to show the buyer serious so the seller can instruct his lawyer to draw legal documents).

So surely, people, you can see why I am scratching my head to what escrow is going to achieve? NO MONEY CHANGES HANDS BEFORE CONTRACTS ARE SIGNED! So how the hell, am I supposed to scam someone!

These questions coming from a community of people who are without question sending $1000s to pre order miners from BFL.......