A REAL house just sold as an NFT. About a week ago, an NFT of a real-world home was sold for $175,000. Essentially, the NFT replaced the deed in this scenario. Whoever owns the NFT, owns the house. This is a great example of how NFT ownership translates into practical real world applications. Of course, there are no laws about this. The lawyer in me still thinks you still need an actual deed to legally own a house... but only time will tell how this holds up in court. #nft #llc #LICreatorAccelerator Story source: https://https://lnkd.in/d29YViW3 Photo credit: https://lnkd.in/eyUg-Vjc
Holding the NFT doesn’t give you anything, especially ownership to the house. If you lose the NFT it doesn’t mean you don’t own the house and if you transfer the NFT it doesn’t effectuate a title change. I don’t see the point.
Why don't you just print them a club card and be done with it? Seems a lot of this stuff is just disrupting for the sake of disruption, without thinking through to the end.
Seems like a solution looking for a problem. You're basically buying an LLC and its sole asset is a house. If financing was required for the purchase, it would be through commercial lending channels, not mortgages. How long before local and state governments figure out that their transfer and intangible taxes are being circumvented? It's an interesting niche, but I'm having trouble seeing this extend into the broader housing model. If a corporation owned thousands of homes, would each need to be held in a different LLC in order to be tokenized and traded?
Very interesting. However... I do have many, many questions, including: - How does an owner set up utilities? Ever try establishing electric or water service in an LLC? I have, and it's one of life great pleasures! 🤣 - How does an owner claim a homestead exemption with their city and tax authorities when the title is held by an LLC? - For that matter, how does an owner claim the mortgage interest deduction on their federal taxes? It's a cool idea, but I'm just not clear on the upside!
Hm well that's interesting, what does the county record? Is there "title" insurance on the "NFT"? What legally shows true ownership the LLC? Who then is liable to pay any mortgage if there is one?
Finally, a use case for NFTs. Oh, but it already exists in a trusted and efficient manner...
In step 2 you say they "tokenize the property." Do you really mean they tokenize the LLC member interest?
So it seems like a syndication…but they mail you a little platinum card like AMEX😜 (that you pay $550 for). And then you own part of it? I get it. It’s like a stock certificate for a real asset. I think the “NFT” term is what is making it sketchy. I am NOT a lawyer, but this makes sense - on a practical level. The confusion lies in the convulsions of legality, technology, and Nueromarketing. How would that little card be any different than a gold bar? Ward Council - wondering if the deal we did would work on this model. If it can all be done within the restrictions of the law, “tokenizing” that place could be huge.
Senior Managing Director at Newmark Knight Frank
1ySorry don’t see the upside here and plenty of downside. But I am sure the guy that comes and knocks on my door 5 months after I bought explaining he is now the rightful owner will have all the answers. 😂 Does an nft eliminate the need for title search and clearance? Does a nft get a lower rate in traditional home owner financing? (I would to go to a bank and explain all of this) Does a nft get you out of home inspection and escrow? This sounds like a crypto anarchist scheme to me.