[ryanmarsh]

This is amusing, and has a whiff of grift but if you are familiar with the real estate title business you'll see that NFT's would be a vastly superior and more transparent solution than what happens today. Title insurance is also a needless racket given NFT's.

Once the real-estate title business adopted NFT's DeFi mortgages would become obvious.

Today if you restructure your mortgage you actually have to file paperwork with the county clerk. County courthouses are the gatekeeper to residential liens. The County/District clerk could use a key to sign liens, etc...

[xur17]

There's a company that purchases properties and rents them out, wraps them in an LLC, and then assigns ownership of the LLC via crypto tokens (this ownership is written into the LLC docs). Owners of the tokens then receive monthly payments for rent.

I'm wondering if it would be possible to do something similar to accomplish what you are talking about - advantage being that no laws need to be modified to make it possible. The LLC acts as a thin proxy layer between the US legal system and the NFT that assigns ownership. Essentially there could be a legal service that would allow wrapping and unwrapping of these properties, and once they are wrapped, DeFi mortgages would become possible, split ownership, transfer of ownership within DeFi, etc. I could imagine a whole ecosystem developing around this that people could buy and sell houses inside of.

[PragmaticPulp]

The missing piece of the puzzle is the cost of recourse for things like non-payment.

If I buy fractional ownership of your rental LLC via traditional means, it's not hard to get those well-understand contracts enforced by courts. Not necessarily cheap depending on your lawyer, but it's well understood.

If I instead buy fractional ownership via some sort of crypto transaction from another country and suddenly the payments stop, it becomes difficult to work with a foreign legal system to understand essentially computer code.

Worse yet, what do you do if someone loses the private keys to their crypto tokens? Or they're stolen? Does the new holder simply get to collect the rent from that point forward? Does a hacker get to own the house because the owner's account was compromised?

[ryanmarsh]

This is why you'll need a trusted custodian (with real estate) ie the district/county clerk, with like a "god" token or something that allows them to make any changes necessary in their jurisdiction, including retroactively assigning a new custodian.

All of what I'm discussing has real world precedent, the only difference would be using DApps for simplicity, security, transparency, and thrift.

Ever wondered what a notary was for?

[AlanYx]

Just curious, do you recall what the name of this company is?

[xur17]

RealT.