The homebuying process can take a village.
Real estate agents, mortgage brokers, and title companies are just a few of the players that move the process along. One real estate developer thinks crypto can help.
Dave Wilkes, a developer, is building the state’s 1st home that will be sold as an NFT, per Utah Business.
In most real estate transactions…
… the buyer purchases the home from the seller, and works with a title company to ensure the title (i.e., the legal right to own the property) is valid, and to insure it. Once the title changes hands, the county recorder’s office updates its records.
But with this house, it’s different:
- The title is owned by an LLC.
- To take ownership of the home, the buyer purchases NFT tokens that equate to the home’s total value (currently listed at $4m).
- The purchase takes place on a smart contract on the Ethereum network.
Wilkes believes smart contracts can save buyers and sellers time and money by removing the need for title companies.
Since purchases appear publicly on the blockchain, validating ownership of the home no longer requires scouring public records, and the ability to purchase the home through tokens means faster transactions.
Before you list your house as an NFT…
… there are risks. First, the LLC will remain on the title in perpetuity, making it unclear who has the legal right to ownership of the home. Second, the process is so new, there’s little precedent for enforcing the terms of the smart contract.
At this point, it may actually be safer to use your crypto to invest in virtual real estate.
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