Title Process - Transfer
We believe it is a top priority to use blockchain as the final source of truth. Because of this, after the loading event Fabrica's protocol is designed in a way that does not require recording of ownership transfer in the traditional way. Transfers on-chain effectuate the ownership transfer of the property since the legal wrapper (as defined in the Operating Agreement) bestows the token holder(s) with rights to the property.
The legal wrapper remains the owner of record on the property tax rolls. However, some counties in the US require transfer notifications in the event a real property transfer has not been recorded. In these instances, Fabrica Inc. or another validator provides notification services to their users.
The process of notifying counties varies widely from state to state, and it is expected validators will develop different practices for each.
In Fabrica's experience, while in Colorado, most counties are comfortable with a notification via email, In Arizona, there are further detailed notification requirements. These notifications are done typically via call and email, and signing any documents the county requires.
Some states have electronic forms to fill out and file, and getting counties to do the work of updating the records can often be a long and painful process. For example, in California Fabrica spent two years going back and forth with regulators before getting approval on a notification strategy that works across all counties in the state.
Best practices and requirements for the validators to comply with state and county records can be found here.
Updated 4 months ago