Tokenized Real Estate

Tokenized real estate is getting a lot of buzz. On paper, it sounds like a revolution: fractional ownership, blockchain-backed security, and faster transactions. But here’s the reality—none of that hype solves the oldest problem in real estate: title.

Blockchain vs. Title Reality

A token might represent ownership, but it’s only as strong as the title behind it. If the chain of title is clouded, disputed, or inaccurate, those tokens are worthless. Blockchain can’t fix bad public records.

Chain of Title Issues

Real property ownership in the U.S. is governed by county land records, not by a blockchain ledger. Liens, easements, unpaid taxes, judgments—none of these automatically transfer to token platforms. Without a proper title search, investors are flying blind.

Legal Enforceability

Token holders don’t automatically get the same rights as deed holders. Courts look at the deed and county records, not your digital wallet. Unless laws change, blockchain ownership won’t hold up without proper recording.

The Insurance Gap

Title insurance doesn’t yet extend to tokenized transactions. If a platform skips title searches, it’s essentially selling risk disguised as innovation. No title insurance means no safety net.

Recording Gaps

Even though blockchain is touted as “immutable,” counties still require deed recording in their own systems. That means traditional title work isn’t going anywhere. You can tokenize all you want, but if it’s not in county records, it doesn’t exist legally.

Where This is Headed

Eventually, counties may integrate blockchain into official land records, but that’s years away. Until then, tokenization is just a parallel ledger—not a replacement for title research.

Bottom line: Tokenized real estate doesn’t eliminate the need for title searches—it makes them more important. Without proper title research, token investors are buying into risk, not security. At Security American Title, we ensure every deal—blockchain or not—rests on a clear, accurate title.