Token Recovery
What happens when you lose access to your wallet or private keys.
Losing access to a wallet's private keys is one of the most common concerns in crypto. For most digital assets, lost keys mean lost assets. Fabrica's trust structure is designed differently: because the property exists in the real world and the trust agreement governs ownership, the protocol includes a legal recovery path that does not depend on blockchain access.
For a detailed look at how the recovery mechanism was designed, see Lost Keys, No Lost Land on the Fabrica blog.
Two Recovery Paths
The Fabrica Trust provides two paths for recovering property when wallet access is lost:
| Path | When to Use | Timeline |
|---|---|---|
| Self-Service Recovery | Owner lost their own keys, no competing claims | ~90 days |
| Court Order | Theft, disputes, contested ownership | Varies by jurisdiction |
Self-Service Recovery (Section 10.2)
This is the primary recovery path. It allows a property owner who has lost access to their wallet to recover full ownership of their property without Fabrica's involvement and without going to court.
Step-by-Step Process
1. Record a Notice of Lost Token Control
The owner executes a sworn affidavit, notarized and in recordable form, declaring that they have lost the ability to redeem the Property Token. The Notice must identify:
- The Token ID and Token Contract address
- The Blockchain Network
- The last known wallet address holding the token
- A description of the circumstances of loss
The Notice is recorded with the county recorder where the property is located.
2. Notify Interested Parties
Within 10 calendar days of recording, the owner sends a copy of the recorded Notice by certified mail to:
- The property address (as shown in county assessor records)
- Any holders of recorded liens, mortgages, or encumbrances against the property
3. Wait Through the Quiet Period
A 90-day Quiet Period begins on the date the Notice is recorded. During this period:
- Any interested party can contest the Notice by recording an instrument with the same county recorder (such as a lis pendens or affidavit of adverse claim)
- If the wallet holding the token initiates any blockchain transaction during this period, the process halts automatically (this protects against false claims of lost access)
- If a contest is filed, the matter moves to the court order path
4. Deliver a Sworn Certificate
After the Quiet Period expires without any contest or wallet activity, the owner delivers a sworn certificate to the trustee confirming:
- No blockchain transaction was initiated by the wallet during the Quiet Period
- No contest was recorded during the Quiet Period
- The owner remains the rightful beneficiary
5. Receive a Deed of Distribution
The trustee executes a Deed of Distribution transferring the property out of the trust into the owner's name. The deed is recorded at the county level, completing the transfer to traditional ownership.
6. Token Becomes Void
Upon recording of the Deed of Distribution, the original Property Token becomes a Void Token. It confers no ownership rights regardless of who holds it on the blockchain.
Court Order Path (Section 10.4)
When the self-service path cannot be used, a court can order dissolution of the trust. This applies to:
- Stolen tokens: Where the token was taken through unauthorized access
- Contested ownership: Where multiple parties claim beneficial ownership
- Interrupted quiet period: Where a blockchain transaction occurs during the Quiet Period and the origin is disputed
- Any other situation where the self-service process cannot complete
The court order substitutes for both the token burn requirement and the cryptographic signature requirement. Courts with jurisdiction include California state or federal courts (San Francisco County) or courts where the property is located.
What Is a Void Token?
A Void Token is a Property Token that has been permanently dissociated from the property and the trust. Key characteristics:
- No ownership rights: A Void Token confers no beneficial ownership, no owner rights, and no interest in the property
- Exists on-chain: The token may continue to exist as a blockchain record, but it represents nothing
- Cannot be "revived": Once void, a token cannot be reconnected to the property
- No reliance on control: Even if someone has "control" of a Void Token under UCC Article 12, they acquire no property rights
The legal validity of the void status is established by the recorded Deed of Distribution, not by any off-chain database or platform status.
Why This Works
The recovery mechanism works because the Fabrica Trust is designed with two layers of ownership:
- On-chain layer: The token on the blockchain
- Off-chain layer: The trust agreement and county records
Under normal operation, these layers are synchronized: the token holder is the beneficial owner. But the trust agreement explicitly provides for situations where the on-chain layer becomes inaccessible. The 90-day Quiet Period provides a safeguard against abuse, and the county recording system provides public notice and legal enforceability.
This approach mirrors established legal processes like quiet title actions, which courts and title companies already understand and accept.
Key Safeguards Against Abuse
The recovery mechanism includes multiple protections to prevent misuse:
| Safeguard | How It Works |
|---|---|
| Sworn affidavit | Filing a false affidavit is perjury, a criminal offense |
| County recording | Creates public, searchable notice of the claim |
| Certified mail notice | Ensures lienholders and interested parties are informed |
| 90-day Quiet Period | Gives any legitimate holder time to respond |
| Blockchain monitoring | Any wallet activity during the Quiet Period halts the process |
| Contestability | Any party can challenge the claim by recording an instrument |
| Court fallback | Disputes are resolved by courts with jurisdiction |
What To Do If You've Lost Access
- Do not panic. Your property is not lost. The trust agreement provides a clear recovery path.
- Try key recovery first. Check for seed phrase backups, hardware wallet recovery, or wallet provider support.
- If keys cannot be recovered, initiate the self-service process by preparing a Notice of Lost Token Control.
- Consider working with a lawyer. While the process is designed to work without legal counsel, an attorney familiar with real estate law can assist with the notarization, recording, and certified mail steps.
- Contact Fabrica support (optional). Fabrica can help guide you through the process, but your recovery does not depend on Fabrica's involvement.
Independence From Fabrica
The recovery mechanism is designed to work regardless of whether Fabrica continues to exist:
- The trust agreement is open source and self-contained
- The county recording system is a public institution
- Any notary and any lawyer can assist with the process
- No Fabrica approval, platform access, or involvement is required
This is consistent with Fabrica's walk-away test: every property owner can operate independently of the platform.
Updated 5 days ago