For a long time, the process of buying and selling agricultural, residential, commercial, and industrial property has been cumbersome. The presence of agents and brokers has led to several issues for builders, developers, and prospective investors. Are you an entrepreneur wishing to use the power of blockchain technology? Commence real estate tokenization now.
What is the meaning of Tokenization of Real Estate?
- Any kind of tangible assets like apartments, condominiums, villas, business parks, flats, etc can be tokenized.
- These properties are sold on a marketplace. Thus, investors need to possess virtual currencies. They can place bids for specific properties after seeing the price, location, and amenities.
- Buyers must connect their software wallets and process the required payment in cryptocurrencies, DeFi tokens, and stablecoins.
- In the same vein, landlords can also list their properties for rent. They need to create an account in the marketplace. Subsequently, the admin of the platform will approve their profiles after verifying their background and credentials.
- Potential tenants can view a list of properties and select the most appropriate one after seeing details like starting date of the rental agreement, lot size, price of the token, total rent to be paid, year of construction, and expected capital appreciation (in %).
What are the advantages offered by Real Estate Tokenization?
Sufficient Liquidity - Users can seamlessly buy and sell properties on a real estate tokenization platform. There are no middlemen and the entire process is very hassle-free. Besides that, owners can also sell off their high-end properties by issuing virtual tokens. Thus, investors benefit from fractional ownership as there are fewer barriers to entry.
High level of transparency - All the quantitative and quantitative information of properties are stored securely in distributed ledgers. Thus, details like the number of offers made by investors, rental agreements, types of properties, new listings, prices, and bids made are available to all stakeholders on a real-time basis.
Automation of tasks - Real Estate Tokenization reduces paperwork to a great extent. For instance, smart contracts operating on certain terms and conditions take care of aspects like conducting KYC/AML verification of investors, recording deeds, collecting rent from tenants, registration of buyers, and storage of documents.
Want to revamp the functioning of the property sector? Initiate tokenization of real estate by reaching out to a white-label solution provider soon.