Multimedia | You can now buy a house in NFT

(ETX Daily Up) – NFTs are not just for the arts or fashion sector. These non-fungible tokens are also starting to disrupt real estate. The proof of the sale of a house in the United States of four million dollars, on its way to becoming the most expensive (real estate) property ever sold in the form of NFT.

Real-world real estate as NFTs? We already knew about the emergence of virtual real estate in the meta-verse. From now on, it is the purchase of properties through non-fungible tokens that is emerging. Last February, NFT was sold at auction in Florida for $ 653,000. And this is just the beginning, say US real estate specialists.

This idea may seem absurd, but in the United States, more and more promoters are offering these new types of deals. Dave Wilkes, a real estate developer in Utah, is currently building a luxury home in the city of Millcreek. This 800 m2 accommodation will include a spa, a sauna, a roof terrace and a swimming pool. To afford this property (and therefore this NFT), potential buyers must pay no less than $ 4 million in the form of cryptocurrencies. The house can thus become the most expensive physical property ever sold in NFT.

Future buyers of the Millcreek villa will actually and officially become owners of the residence. “Everything about the house – the property, the design of the house, the plans, the architecture, you know, all the work that has been done in the house will be part of the NFT transaction with the buyer,” explains David Wilkes of Utah Business. This NFT will also include physical art already present in the house and virtual works. According to him, it will be possible to be able to use this house and even to be able to resell it digitally without going through the property sale process such as the title deed.

Towards a real estate revolution?

Does this seem impossible or simply unthinkable? This is to forget that blockchain has extremely interesting features for the real estate sector. Similar to buying an NFT, each token is managed by what is called a publicly visible smart contract. These contracts are actually quasi-automated computer protocols that will facilitate, verify and execute the terms of a contract.

As part of this Utah house, it’s an LLC that actually wants the title and its capital. However, since the non-fungible token is unique, its owner will have exclusive use of the property. However, at present these smart contracts are not legally enforced and neither France nor the EU has decided on their use. In the future, they could represent a form of legal agreement, as various discussions are underway to create a legal framework for these new contracts.

But then all this, for what purpose? In a traditional real estate business, third-party intervention can increase costs for both buyers and sellers. The main purpose of these houses in the form of a non-fungible token is to facilitate home ownership by providing new opportunities for speed and transparency.

While housing is always more expensive, for David Wilkes, the use of blockchain in real estate can allow less fortunate buyers to build wealth. For example, by accessing fractional ownership of various homes. “I’m convinced that in the future there will be many different types of ownership structures for housing,” he tells Utah Business. “I think the way future generations will own and occupy homes will be very different from what has been done in the last 100 years.”

Axel Barre

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