Real estate on the blockchain

Real estate on the blockchain

With blockchain technology, it is possible to sell your property to 1 owner, or to multiple owners who co-own the building. This is the tokenization of a property, allowing fractional or partial ownership of the asset.

For example

  • A property is sold as 1 token. The buyer owns the whole property.
  • A property is sold as 1000 tokens. If you buy 1 token, you are 0.1% owner of the property
Real estate on blockchain

How is this possible?

  1. We develop a smart contract which ensures that your buyer(s) can buy their tokens and therefore buy a (part of) the property.
  2. We develop a DAO in which all owners can vote on important property decisions. Like, for example, about what needs to be renovated. The more tokens a buyer has, the more voting rights they have.

Smart contracts and real estate

To complete the transaction(s), we develop a smart contract that ensures that the sale and transfer of data will proceed in a safe and organized manner. 

How does a smart contract work in a simple property sale?
When you are selling the property to just one buyer, the smart contract can escrow the buyer’s deposit to be automatically released to the seller on the completion date. Once the smart contract is launched on the blockchain, little to no adjustments can be made to it, strengthening both parties trust.

The smart contract works fully automated. Rental collections and payments to the co-owners are processed automatically.

Real estate on the blockchain presents some practical solutions

  • Tokenization of real estate assets
  • Process efficiency for underlying industry operations
  • Reduced costs from process automation
  • Access to global asset distribution
  • Access to broader investor pools due to ownership fractionalization
  • Access to secondary market opportunities
  • Data accessibility to increase transparency and inform better investment decisions and portfolio management

Contact us and find out what we can mean for you!