Legal Wrappers

A variety of systems exist to track ownership of property. Until property can be held by an NFT directly, county and government systems of ownership rights must be managed. We match these systems by wrapping the property in a legal entity whose operating agreement or similar state-recognized documentation can allow for the representation of the assets on chain.

Many different styles of owning assets onchain have been theorized and/or implemented, each prioritizing and enabling different powers. Trusts, LLCs, unincorporated and incorporated DAOs, and partnerships can all form the basis for representing real property title in the form of NFTs.

In the process of selecting the legal wrapper, asset owners will consider different degrees of certainty, liability, ease of use and risk offered by different options for digitizing the rights and duties of asset ownership.

RE3 NFTs proposed by Fabrica represent ownership and control of the entity that owns the property in the state-recognized ledgers such as the country records or title/deed offices.