When bizarre topics are discussed in my family, we often employ the famous quote by actor Chris Tucker from the funny movie Rush Hour: “Do you understand the words that are coming out of my mouth?” I’m not sure I understand the words I am typing here, so we’ll add links below for you to read for yourself.
A company called Roofstock onChain claims to have sold a house located in Columbia, South Carolina using NFT technology. The address of the house is revealed: 149 Cottage Lake Way, and it’s located in my zip code. If you Google that address, you’ll see lots of pictures of the house and articles about this transaction.
I had to start with the basics to attempt to get a handle on this topic. An NFT is a non-fungible token, a digital asset that can come in the form of art, music, in-game items, videos, and other assets. They are bought and sold online using cryptocurrency. The NFT allows the buyer to own the original item. NFTs have been described as physical collector’s items, only digital. Instead of receiving an actual painting, the buyer gets a digital file that represents exclusive ownership.
To trade in NFTs, the buyer must first have a digital wallet that allows storage of cryptocurrency and NFTs. The wallet must be funded with cryptocurrency. After that step, there are apparently several NFT marketplaces to explore.
So how did this house purchase take place? An LLC was created for the ownership of the three-bedroom recently renovated home. (And here are the words that I don’t understand.) Several of the articles say something along the lines of: The house was sold on the Roofstock onChain NFT marketplace by transferring the home identity to an Ethereum address owned by the buyer.
Dirt lawyers, I ask you, do you see any problems with this transaction? Did anyone search the title? Was there a physical inspection of the home? Was there a survey? Were the taxes prorated? Did a South Carolina licensed attorney close the transaction? I have more questions, but I bet you can come up with a list of your own.
I’ll continue to read about this topic and attempt to keep readers informed. In the meantime, here are some links for your education:
Roofstock onChain – https://onchain.roofstock.com/
Welcome to Ethereum – https://ethereum.org/en/