Legal Ownership Verification

Let’s say you find a beautiful beachfront property and decide to tokenize it, allowing investors to buy digital shares of the property. You set up a platform, issue tokens, and people start investing. Sounds great, right?

But here’s the problem…

A few months later, a man shows up claiming the land actually belongs to his family. He provides old land records proving that the seller never had the right to sell it in the first place. Investors panic. The courts step in. Now, your entire tokenized investment is worthless.

This disaster could have been avoided if ownership had been properly verified before tokenization.

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Real Estate Ownership Verification: Step-by-Step Example

1. Proof of Ownership

   1. What to Check? Government property records, land title deeds, and legal ownership certificates.

   2. What Can Go Wrong? Seller does not actually own the property, or the title is forged.

2. Legal History Check

   1. What to Check? Any disputes, past lawsuits, or conflicting ownership claims.

   2. What Can Go Wrong? The property is part of a family inheritance dispute, and multiple heirs claim ownership.

3. Liens & Encumbrances

   1. What to Check? Outstanding loans, mortgages, tax debts, or restrictions that limit property transfers.

   2. What Can Go Wrong? The property was used as collateral for a bank loan that hasn’t been paid off - meaning investors could lose their money.

4. Compliance Review

   1. What to Check? Does the local government allow real estate tokenization? Are there restrictions on foreign ownership?

   2. What Can Go Wrong? The country does not legally recognize digital tokenized ownership, making your investment unenforceable.

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