1. How does digital contract work?
The official Tenancy Agreement template is stored digitally through smart contract and blockchain. The homeowner only has to set terms and input fields such as tenure of lease, tenant’s name, NRIC, address on the Averspace mobile application. An official Tenancy Agreement will be created immediately with these relevant fields for both parties to sign. Once signed, the Tenancy Agreement for your specific rental transaction will be securely stored on the database.
2. What is smart contract?
A smart contract is a pre-written set of computer logic which stores and replicates a template on a storage platform. A smart contract also facilitates, verifies and enforces the performance of an actual contract and this makes a contractual clause unnecessary.
By using smart contract, both homeowners and tenants can deal directly with each other, without the need to sign physical tenancy agreement face to face in the presence of a witness.
3. What is blockchain?
A blockchain is like a secured database. It is a data structure which creates a digital ledger of transactions and shares this among parties involved. Each party is able to make records on the ledger securely without the need for a central authority, like a notary or witness.
Once a block of data is recorded on blockchain, it is almost impossible to change it which makes contracts stored on blockchain secure.
For more details on smart contract and blockchain, click here
4. How do digital contracts differ from traditional contracts?
Traditional contracts are created by legal professionals and enforced physically. These legal enforcements are usually time consuming and require both parties to be present in the same physical space at the same time. A digital contract removes the hassle of additional legal works and paper records but it is just as valid as a traditional contract. According to Singapore’s Electronic Transactions Act (ETA), electronic records, signatures and contracts have legal effect, are valid and enforceable. Click here
for the full ETA statute.
With digital contracts, you can list your house for rent even when you are overseas. You do not have to be in Singapore to complete the rental transaction with an interested tenant. Digital contracts save you time, paper and the hassle of going through a third party.
5. Can I pay my rental deposits and monthly rental fees on Averspace?
Currently, you cannot pay your rental deposits and fees on Averspace. However, we have partnered with CardUp.co
which offers you a payment solution and allows you to earn miles, points or cashback on your monthly rent payment. All you need to do is set it up once at the start and schedule it as a monthly recurring payment. This way you never need to worry about missing a payment to your landlord!