Multimedia | You can now buy a house in NFT

(ETX Daily Up) – NFTs aren’t just for the arts or fashion industry. These non-fungible tokens are also starting to disrupt real estate. The proof with the sale of a four million dollar house in the United States, on its way to become the most expensive real estate ever sold in the form of NFT.

Real-world real estate as NFTs? We already knew about the rise of virtual real estate in the metaverse. As of now, it is property purchases through non-fungible tokens that are on the rise. Last February, the NFT of a Florida home sold at auction for $653,000. And this is just the beginning, according to US real estate specialists.

This idea may seem absurd, but in the United States there are more and more promoters offering these new types of offers. Dave Wilkes, a Utah real estate developer, is currently building a luxury home in the town of Millcreek. This 800 m2 residence will include a spa, sauna, roof terrace and swimming pool. To be able to pay for this property (and therefore this NFT), potential buyers will have to pay no less than 4 million dollars in the form of cryptocurrencies. The house could thus become the most expensive physical property ever sold in NFT.

Future buyers of villa Millcreek will become the actual and official owner of the accommodation. “Everything about the house – the real estate, the design of the house, the plans, the architecture, you know, all the work done in the house is included in the NFT transaction with the buyer,” explains David from Wilkes at Utah Business. This NFT also includes physical art already in the home and virtual works. According to him, it will be possible to use this house and even resell it digitally without going through the real estate sales process such as the title deed.

Towards a real estate revolution?

Does that seem impossible or just unthinkable? This is to forget that the blockchain has extremely interesting properties 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-automatic computer protocols that will facilitate, verify and execute the terms of a contract.

As part of this Utah home, it is an LLC that will actually hold the title and capital. But since the non-fungible token is unique, the owner will have exclusive use of the property. For now, however, these smart contracts are not legally enforceable and neither France nor the European Union has decided on their use. In the future, they could be a form of legal agreement as several discussions are underway to provide a legal framework for these new contracts.

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

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

Axel Barre

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