This is hailed as the first-ever in Ontario, and likely, in Canada: a property (a condo on 3170 Erin Mills Parkway) in Mississauga came on the market in February, listed for 35 bitcoins. An offer was made and closing is pending.
Bitcoin is a new global, digital currency—basically, lines of computer code that hold monetary value, created by mathematical computations and policed by millions of computer users called “miners.” Invented in 2009, it is considered by some as a revolutionary new monetary system.
The Mississauga property offered for 35 bitcoins ($443,000 value on the day of the listing) is owned by former Wall Street derivatives trader-turned-insurance broker Derryn Shrosbree. Shrosbree approached several real estate agents before he found one who was willing to be in on the deal— Brett Starke.
Selling real estate for bitcoin is considered trailblazing. Bitcoin is not a legal tender in Canada, but you can use it to purchase goods and services online, or simply hold onto them in the hope that their value increases. One of the risks with bitcoin is that it is traded online and its value fluctuates wildly from day to day.
To address the issue of bitcoin value fluctuations, agent Starke had the lawyers write a clause in the selling agreement, where the buyer will pay the value of bitcoin on closing day. Until the closing, the owner and the agent re-price the property every day.
An offer was made on the condo on Wednesday, Feb. 28th, at its most recent listing price of 33 bitcoin (which at the time was worth roughly $443,000). The offer was accepted and the condo is considered “conditionally sold.” An action plan on how to proceed with the exchange of money is in the works. The final selling price won’t be disclosed until all conditions have been fulfilled.
The sale of the condo on 3170 Erin Mills Pkwy in Mississauga is certainly a deal to watch. If successful, it just might pave the way for bitcoin transactions in real estate to become the norm.