How to Sell a Property Token after Tokenisation

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1. Check the Platform’s Rules

When you buy a property using tokenisation (such as through a platform like PROPERTY), you receive a digital token on the blockchain that represents a fractional or economic interest in the property. If you decide to sell your token, the process typically includes these steps:

• Review the platform (like PROPERTY) that issued your token to understand its resale policy.
• Find out if your token can be traded freely or if there are lock-up periods or restrictions on sales.

2. Prepare for Sale: Legal and Compliance Steps

• Verify that your identity documents and any required compliance checks (such as KYC/AML) are up to date, as most platforms require this for secondary sales.
• Confirm that you have access to your digital wallet holding the property token.

3. List or Offer the Token for Sale

• Secondary Market: Many property tokenisation platforms support built-in or partnered secondary markets where you can list your token for sale to other investors.
• Direct Sale: Some platforms allow private, peer-to-peer sales. You might be able to specify a price and negotiate directly with a buyer.
• Other Exchanges: In certain cases, the token may be eligible to trade on broader digital asset exchanges that comply with relevant regulations and support real estate tokens.
• The listing process usually involves submitting your token for sale, setting terms (such as price or auction format), and waiting for a buyer.

4. Complete the Transaction

• Once a buyer is found, the transaction is completed on the blockchain via a smart contract.
• Ownership of the token transfers automatically in exchange for payment, often in cryptocurrency or fiat currency, depending on the platform.
• Your proceeds are credited back to your account or digital wallet.

5. Post-Sale Considerations

• Ensure compliance with any tax or regulatory requirements arising from the sale.
• If the token entitles the holder to ongoing income (such as rent), ensure you correctly transfer rights alongside the token.

Key Points

• Liquidity: Selling a token is generally much faster than selling traditional property, but availability of buyers and platform liquidity vary.
• Platform Rules: Each platform may set specific rules regarding who can buy/sell and the process.
• Smart Contracts: Transactions are automated and recorded on the blockchain, enhancing trust and transparency.

Example Step-by-Step

Selling a tokenized property interest is similar in concept to selling company shares—the biggest changes are the digital format, greater transparency, potentially faster transactions, and unique legal considerations for real estate tokenisation.

Several specialized platforms and marketplaces facilitate the resale of property tokens, allowing investors to buy, sell, or trade fractionalized real estate assets. The largest and most established real estate tokenization platforms with active secondary markets include:

• Blocksquare – Functions as a decentralized marketplace dedicated to property tokens, connecting property owners, developers, and investors. This platform streamlines discovering, investing in, and managing property assets, offering a secure and transparent trading environment.
• RealT – Allows users to invest in and trade fractional ownership of U.S. real estate directly on their platform. Token holders can buy and resell tokens easily among platform participants.
• Solidblock (now DIBS Capital) – Provides digitized real estate investments with compliant trading of property tokens, focusing on commercial and institutional properties.
• Brickblock – Enables trading of real estate tokens for both debt and equity, including tokenized real estate bonds and funds. The platform incorporates brokerage and asset management services.
• Reido – Incorporates a decentralized autonomous organization (DAO) and facilitates crowdfunding as well as token trading within its ecosystem for both primary and secondary markets.
• BrickTrade – Specializes in tokenizing commercial real estate and development projects, providing a secondary market for the resale and purchase of tokenized property shares.
• Propy – Automates property transactions and facilitates international sales of tokenized real estate assets directly through its blockchain-enabled platform.
• Tokeny Solutions – Offers a platform for issuance, management, and trading of real estate tokens built with a strong emphasis on compliance and security standards.

Some platforms, such as Domoblock and Reental, also support tokenized real estate investment and trading, though they currently have a stronger footprint in specific local markets (like Spain and Latin America). Decentralized marketplaces for property tokens are emerging, providing peer-to-peer trading and increased liquidity, often leveraging smart contracts and blockchain-based exchanges.

It is important to note that the availability and liquidity of resale options depend on each platform’s user base, regulatory compliance, and the type of real estate assets offered. Always verify local investment and legal requirements before trading on these platforms.

GTSA-SA

Founded in 2004, GTSA began as a single office in Buenos Aires. Since then, it has grown into a vibrant regional network, providing professional real estate marketing services to clients in AR, BR, CL, PY, PE, and UY.