Process
Last updated
Last updated
Real Estate powered by RAN Platform is developing new ways to support and manage the application of NFTs such as property ownership transfer for entire property, not fractions. It is much easier to transfer 100% property rights for a real estate asset via blockchain without triggering the securities law violation. Here is how a real estate NFT sale could work.
STEP 01
First, there is a legal preparation for the sale of a property as an NFT or a development proposal requiring equity capital or for the total development cost.
STEP 02
The proposal is submitted to the Marketplace Platform for approval.
STEP 03
If approved, NFT’s are NFT is “minted” that includes descriptive and legal data about the property, including paperwork, disclosures, reports, image files, and even videos. The NFT is proof of ownership. Legally, whoever has possession of the NFT, owns part of the property through an ownership vehicle.
STEP 04
That NFT, which resides on a distributed ledger, can then be placed into an existing NFT marketplace for sale on real estate NFT-focused marketplace.
STEP 05
Potential buyers and investors bid for the minted NFTs. Successful buyers pay for the NFT in fiat or crypto currency, most likely via a third-party escrow service such as a Custodian or smart contract designed to perform these escrow duties.
STEP 06
In a limited window, after funds are released to the seller or developer, the NFT is transferred to a wallet controlled by the buyer, the buyer completes paperwork to finalize legal ownership transfer.