NFT and real estate

The Propy platform auctioned the first NFT property and achieved $93,000: this transaction will revolutionize the real estate market.

The significance of the process is as follows, the property’s Ethereum-based NFT, which stores smart contracts, includes those lines of code that describe the set of rules that must be followed before it can be unlocked and money can be transferred.

For those familiar with real estate, smart contracts may resemble the receivership of an NFT property, which represents a legal agreement in which a third party temporarily stops the transfer of money or property until a special condition is met.

Selling a property in NFTs: the future of electronic contracts?

As NFTs are ultimately digital certificates, they also certify ownership, which facilitates the digital transfer of your ownership rights to the new owner.

Subsequently, the sale is recorded on the Ethereum blockchain, thus minimizing paperwork and avoiding a transfer of ownership through a conventional act, in which case NFT certificates minimize paperwork.

Once the process is completed, the new owner of the NFT becomes the owner and, therefore, of the asset itself, as this process is repeated each time the NFT is attached to the asset.

Conclusion

Not only can NFTs help ‘tokenize’ property by simplifying contracts, but they can also help homeowners use their homes as collateral for loans without the complicated approval process.