Property carried on-chain as a claim bound to legal title — fractional or whole-asset — where the register and the land record point at the same truth. Ownership becomes transferable at settlement speed without severing it from the law that makes it real.
On-chain ownership is bound to the recognized property record so that the ledger position and the legal owner cannot diverge.
Each property object references the recognized land-registry record it represents, so the on-chain claim and the legal title are two views of one asset. The token does not assert ownership the registry contradicts.
A property can be held as a single object or divided into fractional interests, with the division recorded as native sub-claims summing to the whole. Fractionalization never creates more than one hundred percent of the asset.
Mortgages, liens, easements, and charges are recorded as encumbrance states on the object, so a buyer sees what burdens the title before settlement. The lien and the property live on the same record.
Where a property is held through an SPV, the token represents the entity interest and the entity's sole asset is the property, keeping the on-chain claim and the off-chain legal structure coherent. The wrapper is modeled, not ignored.
Payment, transfer, and the conditions of a lawful conveyance are bound into one settlement so a buyer is never paid-out-of-position.
The property claim and the CBDC purchase price settle in a single atomic operation, removing the escrow gap where funds and title are both in motion. There is no window of principal risk at closing.
Regulatory approvals, foreign-ownership limits, and pre-emption rights are enforced as conditions on the transfer, so a non-compliant sale fails rather than completing and unwinding. The closing checklist is executable.
The ledger transfer is coordinated with the update to the recognized land record, keeping the legal registry and the on-chain register in step. The two records move together, not on separate timelines.
Fractional interests transfer with the same atomic DvP as whole assets, enabling secondary trading of property stakes without re-papering the underlying title. Liquidity is added without loosening the legal anchor.
Rent, distributions, and cost allocations are computed and settled from the register, so property cash flows follow ownership automatically.
Net rental income is allocated to fractional holders by their pro-rata share at a record-date snapshot and settled in CBDC. Distributions follow the register without a managing agent's manual split.
Operating costs, capital reserves, and debt service are drawn in encoded priority before distribution, so holders receive genuine net income. The reserve policy is enforced, not merely stated.
Where the property carries debt, amortization and interest are serviced against the encoded loan terms and reflected in the encumbrance state. The debt and the equity are serviced on one ledger.
Property taxes, stamp duties, and jurisdiction-specific levies can be computed as servicing logic tied to the asset and holder attributes. The gross rent and the after-tax distribution are both on the record.
Every ownership event since tokenization is chained, so the asset's history is reconstructable without commissioning a search.
Each transfer, encumbrance, and release is recorded in sequence, letting a buyer or auditor reconstruct chain-of-title from the ledger. The history is present rather than searched for.
Because the register is hash-chained, a retroactive alteration to ownership or encumbrance history is detectable. Title fraud that depends on quietly rewriting the record is structurally defeated.
Appraisals, surveys, and inspection attestations can be anchored to the asset object as timestamped references, keeping diligence artifacts with the property. Due diligence accretes to the asset over its life.
The chained record provides a non-repudiable evidentiary basis for ownership and encumbrance in the event of dispute. What the ledger shows is verifiable independently of any single party's files.
Registers of land and ownership are sovereign records, so residency, key control, and long-horizon integrity are treated as requirements.
The property register and its history reside within national infrastructure, keeping cadastral and ownership data under domestic legal control. Sovereign land records do not leave the jurisdiction by default.
Holders control their interests with their own keys, so ownership reflects genuine control rather than a custodian's ledger entry. The state's land record is not dependent on an intermediary's books.
Property claims persist across decades, so they are signed under ML-DSA-65 to keep ownership authenticity verifiable across the asset's full holding horizon. A generational asset is protected on a generational timescale.
Land authorities and auditors verify against the tamper-evident record without write access, aligning oversight with the legal registry. Supervision reads the same record the market relies on.