If you have been around crypto for a while, you have seen hundreds of “real estate tokens” come and go. Many were a coin with a photo of a house attached. So when a project calls itself a property token, it is fair to ask what that actually means.
This is the honest breakdown.
Three Things People Call a Property Token
A share in a company that owns a building. The building sits in a company, and each token stands for a small share of it. If the building is let, some of the rent may be paid to holders. This is what RealT and Lofty sold. In most countries it is a security.
A record of a deed. Some projects record a property sale on a blockchain. The legal title still sits with the land registry. In England and Wales, that is HM Land Registry.
A utility token sold by a property company. The company owns the property. The token is sold to fund the company and gives no share in the property. BLK is this kind.
What BLK Is
BlockHaus is a UK property company. BLK is our utility token on Polygon. The money raised in the presale buys and refurbishes property for the company, starting in the UK, including London, and in Dubai, and pays for building the business.
BLK gives you no ownership of any property. It pays no rent, no dividends and no returns. Any profit stays in BlockHaus to buy more property and run the business. BLK is not listed on any exchange, no listing date is fixed, and it has no guaranteed value. You can lose everything you pay.
Four Questions to Ask Before You Trust One
Does the token give you a claim on the building? If yes, ask to see the legal documents. If no, as with BLK, know that you are not buying property.
Is the property actually owned? Ask for the deeds. BlockHaus has not bought its first property yet, and no property appears on our site until it can be shown with its documents.
Who runs the property? Buildings need repairs, tenants and tax paid. I have spent 35 years in property, and that work is where projects live or die.
What can the owner key do? Every token contract has an owner with some powers. Ours is one Ledger hardware wallet, held by me. It cannot mint or take back BLK you have bought. Everything it can do is on the trust page. Both contracts are verified on Polygonscan and have not been audited by any independent firm.
A project that answers all four plainly is rare. Ask them of us too.
For more detail, read what tokenised real estate actually means or what is BlockHaus.
Not available to residents of the United States, the United Kingdom, the United Arab Emirates, or countries under UK sanctions. This is not financial advice. Do your own research.
