Process

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.

1. 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.

2. STEP 02

   The proposal is submitted to the Marketplace Platform for approval.

3. 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.

4. 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.

5. 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.

6. 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.

As the public becomes less confused and more aware of NFTs and other forms of cryptocurrency, real estate will catch up. This opens up an entirely new playing field for property ownership. For years platforms have been attempting tokenization of real estate assets and closing processes with somewhat marginal success, but this adds a whole new level for democratising real estate.