Deed Tokenization

Deed NFTs are created by Plano’s Tokenizer dApp, provided a number of conditions have been met by the Tokenizer. This person can be either the owner or buyer of a property. Owners may tokenize a property that they own whereas buyers may tokenize a property that they are buying by taking possession of it via a Titleholder.

Prior to minting, the Tokenizer dApp will transfer the title of a property to an authorized Titleholder. The titleholder is a legal entity, such as an LLC or Irrevocable Trust, that acts as a container to hold the title. Container entities have a strong legal underpinning with global reach and this practice is well accepted within the real estate industry today.

In the case where the Titleholder is an LLC, the Tokenizer dApp will create the LLC and assign fractional membership of it to a set of owners whose details are provided by the Tokenizer.

Local Authorities

The tokenizer dApp facilitates the following real world actions on titles within the jurisdiction where they are authorized.

• Perform title search - 1) Perform a title search and issue a Title Record NFT that holds the result of the title search.

• Create a Titleholder with fractionalized members - 1) Create an LLC where the manager of the LLC is the Tokenizer and 2) assign members fractional ownership in the LCC according to direction from the Tokenizer

• Transfer title from Owner to a Titleholder - 1) Transfer title to a titleholder

• Transfer title from Titleholder to an Owner - 1) Transfer title to the Owner

• Calculate fees - 1) Calculate and report fees and taxes on for each action authorized.

• Execute a Deed of Trust - 1) Register a deed of trust in favor of the LLC.

Preparing to Tokenize an Asset

Plano will collect all information and documents necessary and required by regulations within each jurisdiction to perform each authorized action.

Part of this process will include a title search that will generate a Title Record NFT. This NFT will be attached to the final Deed NFT so as to record any outstanding liens on the property that will be repaid by Plano during a settlement event.

Minting an NFT

Once documents are collected and verified, the Tokenizer will be offered the opportunity to mint the Deed NFT for themselves and any fractionalized owners.

Legal Process

Following the minting of the NFT and payment of fees associated with tokenization, a Local Actor will work to transfer the title to the titleholder and execute a Deed of Trust for any amount not encumbered by existing liens as reported by the Title Record NFT. Once this process is completed, the NFT will be saleable on the Plano platform.

Burning an NFT

When the owner of an NFT wishes to take possession of the property title of the asset directly, they can burn their NFT. This will direct Plano, via a smart contract, to organize the transfer of title to the NFT burner directly. This process will be orchestrated in the real world by an authorized Local Agent working with Plano. In the case that ownership is fractional, each owner must provide authority for this action to proceed.