The Tokenized Revolution In Real Estate Summit

Key considerations regarding real estate tokenization

I. Securities law implications
Generally, the tokenization of real estate will be considered a security but an analysis on each specific token should be considered at the outset. If the token is a security, the issuance of such a token will be subject to the applicable prospectus requirements or reliance on an exemption, such as the “accredited investor” exemption.

In addition to the prospectus requirements, the issuer must consider the applicable registration requirements.

II. Reconciliation with the land registries
Real estate tokenization requires reconciling the applicable transaction with the current systems of land registration.

As each jurisdiction in Canada has its own land registration system, an issuer of a real estate token will be required to reconcile the transaction with the land registration systems of the jurisdictions where the underlying real estate is located.