What Are NFTs?
An NFT, or Non-Fungible Token (unique, one of a kind, non-interchangeable) is a digital, easily verifiable asset, built and stored on a blockchain.
This asset can then be easily traded, sold or borrowed against its value.
It provides authenticity of ownership via a digital certificate that represents a specific asset – digital or physical, in the real world or the metaverse.
NFTs In Real Estate
NFTs are the perfect vehicle for the transfer of property ownership. NFTs are basically unique digital titles to property, either real or virtual, that are stored on a blockchain ledger. This reduces the risk of fraud and ownership is immutable.
Property tokenization was initially difficult to accomplish due to the regulations surrounding real estate investments, but Propy has developed a process that successfully works within the required legal framework.
Buying Real Property NFTs on Propy’s NFT Marketplace
Real estate NFTs can be bought and sold just like any other NFT. They're purchased using a cryptocurrency (usually of the seller's choosing), and held in a digital wallet. The only difference is that a real property NFT purchase requires completion of a “Know Your Customer” Form” and prospective buyers must be white-listed prior to submitting an offer.
Propy makes purchasing a real property NFT fast and easy because their Marketplace was developed specifically to support these types of sales.
Our upcoming NFT sales will use the USD Coin (USDC). USDC is a “stable coin” that is “pegged” to the U.S. Dollar, so it doesn’t have the volatility of other cryptocurrencies. 1 USDC will always equal $1.
How To Prepare For an NFT Sale on the Propy Marketplace
- Create a Metamask wallet – watch a short, "how-to video" here. You must use a Metamask wallet to make an offer on the Marketplace.
- Fund your wallet with the required amount of USDC (NFT sale currency) you wish to offer
- All users will need a small amount of ETH and PRO in their wallets, as well. Fund your wallet with 20 PRO and 0.2 ETH coins. Ethereum Tokens will be required to transfer the NFT to your wallet. A 20 PRO Token service fee is required prior to placing your initial offer. Here’s where you can purchase them: https://coinmarketcap.com/currencies/propy/markets/.
- Complete the required KYC Form. Note that prospective buyers who don’t pass KYC verification will receive a refund of the service fee. A picture ID/ passport is required.
Watch a short video that walks you through the stages outlined above:
Advantages of Real Estate NFTs
- Tokenizing “ownership rights” makes it much easier to trade, manage and transfer property ownership.
- NFTs and blockchain technology make it very easy to ensure the chain of ownership.
- Smart contracts automate the entire transaction and sales process, required paperwork, and deed transfers.
- The NFT is proof of ownership that can be transferred to all future buyers.
- Legally, whoever has possession of the NFT, owns the property.
- NFTs can be easily borrowed-against.
