In the following, we present a framework for the “trustless” frequent trade of ownership rights to real property, via the “encapsulation” of those rights into a Non-Fungible Token (NFT), and participation of NFTs in the DeFi space as well as crypto title insurance. In this framework, the transfer of possession of the NFT will act as a proxy for the purchase of the real estate.

The concept comprises maintaining an electronic version of the Propy NFT ownership proprietary paperwork “on-chain” where the NFT smart contract can change the name of the legal entity owner as a result of a transfer of the NFT from a seller to a buyer on an NFT auction site such as Propy NFT Marketplace. Our task is to provide the legal framework that authorizes the NFT smart contract to do the modifications of the legal paperwork, and also the legal framework in the Terms of Use agreements governing the creation and the listing of the NFT.

The paper will also discuss three ways of transacting real estate utilizing blockchain-enabled solutions, including NFTs; as well as “blockchainizing” or “NFT-ing” real estate in the US as a long term strategy.