Real Estate Property Charges
Another asset that is being tokenized through Crypto Banque’s WLT are real estate properties but the process of owning a property to be tokenized can only be completed once you have full ownership of the property without any charges. If a bank were to give you a loan for you to purchase or own a property, you would then have a charge on it before you can sell it and get your money. This means that the lender is able to protect the money they have lent to an individual. A charging order turns an unsecured debt into a secured debt with a creditor against your property.
This also means that if you sell or remortgage your home before the debt is cleared, the charging order will be paid off from the proceeds. If a property were to be sold while there are still charges to be paid, the bank or lender of the money will be repaid out of the sale proceeds followed by fees and disbursements incurred in connection with the sale. For example, a bank could lend you money against your tokens as a charge which means you would have to pay off your charge to the bank until you would be able to have ownership of your tokens against the bank. Once a charge is fully paid off, you will have full ownership of the property over the lender. Once you have ownership of the property, you are then able to tokenize your property and issue tokens against your property. This will allow people to buy and sell coins against your property that will maintain its value until the tokens were to be exchanged which would then update to its new value after the tokens were to be sold or exchanged.