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# Proof of Reserve - Real Estate

Bringing trust and transparency to real estate tokenization
Fact Finance provides a robust Proof-of-Reserves (PoR) framework designed specifically for real estate tokenized assets. By verifying the ownership, valuation, and existence of underlying properties, our solution ensures asset-backed tokens are credible, auditable, and transparent.

# How It Works

# 1. Off-Chain Validation

We begin with the rigorous validation of real estate assets in the physical world, ensuring the accuracy, ownership, and current valuation:

  • Data Collection:

    • Trusted sources:
      • Property Registries (e.g., land title offices, government databases).
      • Valuation Reports from certified appraisers.
      • Audits by independent real estate firms.
    • Documents include:
      • Property ownership deeds.
      • Recent property valuation certificates.
      • Legal status and encumbrance details.

  • Data Verification:

    • Ownership Confirmation: Ensuring legal ownership through verified deeds.
    • Valuation Validation: Cross-check appraisals with market prices, rental yields, and local property indices.
    • Encumbrance Check: Identifying liens, mortgages, or other claims against the property.

  • Cryptographic Signing:

    • Once verified, all data is signed using cryptographic keys by the trusted data provider to guarantee authenticity and immutability.

# 2. On-Chain Integration

Validated real estate data is seamlessly published on-chain for transparency and accessibility:

  • Structured On-Chain Data:

    • Property Details:
      • Ownership information (hashed for privacy).
      • Valuation and timestamp of appraisal.
      • Legal status (e.g., encumbrances, liens).
    • Proof-of-Reserves Certificate:
      • Digitally signed by the verifier.
      • Stored immutably on-chain.
    • Cryptographic Proof: Ensuring no tampering or manipulation.

  • Onboarding Process:

    • Fact Finance Oracle validates and publishes the cryptographically signed reserve data on-chain.
    • A unique PoR certificate is generated and tied to the tokenized real estate asset.

  • Real-Time Updates:

    • Regular audits and updates keep PoR certificates current, ensuring tokens remain backed by verified reserves.

# Key Data Points Provided by the Oracle

  1. Property Identification

    • Unique Asset ID (e.g., land registry number or digital token ID).
    • Location: Country, city, and specific address (hashed for privacy if needed).

  2. Ownership Details

    • Verified legal owner (with cryptographic proof).
    • Date of last ownership validation.

  3. Valuation

    • Most recent property value, validated by certified appraisers.
    • Timestamp of valuation.

  4. Legal Status

    • Encumbrances: Information about liens, mortgages, or outstanding claims.
    • Clean title verification.

  5. Liquidity and Market Data

    • Recent comparable sales (local property prices).
    • Rental yield, if applicable.

  6. Cryptographic Proof

    • Hash of the verified data package.
    • Signature of the third-party validator/auditor.

# Use Cases for Real Estate Proof-of-Reserves

  • Tokenized Real Estate Funds:

    • Verify the existence, ownership, and valuation of properties backing fractionalized tokens.

  • Collateral for Lending Protocols:

    • Ensure that tokenized real estate used as collateral is backed by verifiable properties with current valuations.

  • Investor Audits:

    • Investors can independently verify PoR certificates on-chain for full transparency.

  • Decentralized Exchanges (DEXs):

    • Validate that real estate-backed tokens traded on DEXs are backed by genuine, physical assets.

# Contact Us

Ready to integrate Proof-of-Reserves for your tokenized real estate project?
📧 Contact the Fact Finance Team: [email protected]

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