Vicente Ortiz de Vicox. legal
If we understand tokenization here as the process of virtualizing real estate and encapsulating its value, there are countless advantages when digitizing a real-world asset, using technology.#Blockchain.
Currently, purchasing a property or applying for a mortgage involves a lot of paperwork.
With a#NFT , the transaction process is streamlined, allowing the buyer to verify the property and identify themselves in a matter of minutes.
Digital transactions are often susceptible to hacks.
However, by using blockchain and NFT technology, higher levels of#securityand data integrity can be achieved. This protects both buyers and sellers and makes it much easier to transfer assets seamlessly.
Likewise, having converted this real estate asset into a financial instrument, buyers can request a loan against the NFT using decentralized financing (DeFi) or traditional financing (TradFi) products on the blockchain, skipping all the paperwork.
In addition, more transparency and automation are added while many barriers to entry are eliminated.
How to do it?
To sell real estate as NFTs, the first step is to raise the legal part in the jurisdiction where you decide to issue these NFTs. We must also work on “legal notices”, contingency plans, marketing, taxation and licenses.
Once you are ready to move forward, you can “mint” (mint) an NFT with descriptive and legal data about the property. In this way, the NFT receives all the necessary documentation, declarations and reports so that it has the legal authority to represent proof of ownership. Currently these data could be not only static but also dynamic (electricity, water consumption, tax collection). The underlying in this case must follow the process set by the NFT.
Once the NFT is created, you can enter it into a secondary NFT marketplace to sell it to potential buyers. Buyers will bid on the property, and the auction winner will pay for it in fiat money or cryptocurrency. Once the funds have been released and the NFT has been transferred to the buyer's wallet, they will complete the paperwork to finalize the transfer.
Surely many more use cases for NFTs in the real estate sector will change the industry as a whole.
In short, due to the many advantages offered by tokenization in general and decentralization in particular, it is only a matter of time to see NFTs and the real estate sector walking together. VICOX
👉What do you think? Do you see it viable in Europe?
