Automated Tokenization Of Property Rights

Abstract

A system for bridging between centralized and decentralized systems such that an owner can access equity in their property and a purchaser can have a high degree of confidence in the property rights being purchased. The system includes an equity conversion computer having software executing thereon to intake property information and property conversion software executing thereon to convert the real property rights to be collateralized into tokens to be registered on blockchain (decentralized system) and on government computer systems (centralized systems). The software intakes the information, saves the information in a usable format and generates various documents in formats usable by the various system the equity conversion computer communicates with. The tokenized property rights can then be converted to a crypto currency by a purchaser desiring to purchase the property rights associated with the tokens.

Description

Claims

1. A method of automatically tokenizing property rights to convert to a crypto currency with an equity conversion computer having software executing thereon and having access to a network, the equity conversion computer performing the following steps: presenting a property information intake page to a user computer associated with a user account including an electronic wallet, the property information intake page comprising a plurality of property information fields;saving property information input into the plurality of property information fields on the storage in a first format;automatically generating a property profile based on the property information saved on the storage and transmitting the property profile to the user computer;generating documents granting property rights associated with the real property profile to a governing entity;generating recordation documents for recording the property rights with a government recordation computer;generating a smart contract associated with the property rights;generating tokens associated with the smart contract;recording the smart contract in blockchain; andtransferring the tokens to a wallet saved on the storage of the user computer.

2. The method of claim 1 further comprising the steps of: displaying the tokenized property rights for purchase;transferring a monetary value to the wallet; andtransferring the tokens from the wallet to a rights purchaser computer.

3. The method of claim 2 wherein the step of displaying the tokenized property rights for purchase is performed by the equity conversion computer.

4. The method of claim 2 wherein the step of transferring a monetary value to the wallet further comprises the steps of: transferring the monetary value to the equity conversion computer, which then transfers the monetary value to the wallet.

5. The method of claim 2 wherein the step of transferring the tokens from the wallet to a rights purchaser computer further comprises the steps of: transferring the tokens to the equity conversion computer from the wallet, which then transfers the tokens to the rights purchaser computer.

6. The method of claim 1 wherein the step of generating tokens associated with the property rights further comprises: generating parent tokens; andgenerating child tokens.

7. The method of claim 1 wherein the property rights are real property rights, and the governing entity comprises a Home Owners Association (HOA) or a Property Owners Association (POA).

8. The method of claim 7 wherein the tokenized real property rights are selected from the group consisting of: surface rights, subsurface rights, digital rights of display and combinations thereof.

9. The method of claim 8 wherein the surface rights are selected from the group consisting of: crops, livestock, timber, easement, carbon sink and combinations thereof.

10. The method of claim 8 wherein the subsurface rights are selected from the group consisting of: water, mineral, storage, easement, carbon sink, and combinations thereof.

11. The method of claim 7 wherein if the governing entity for the jurisdiction in which the real property rights are located does not exist, the method further comprises the steps of: the equity conversion computer automatically generating governing entity documents in a second format to form the governing entity, the governing entity documents formatted to be automatically received by a government recordation computer; andthe equity conversion computer filing the governing entity documents with the government recordation computer.

12. The method of claim 1 wherein the electronic wallet comprises Anti-Money Laundering (AML) and Know Your Client (KYC) information.

13. The method of claim 1 further comprising the step of: the equity conversion computer generating login credentials associated with a user accessing the equity conversion computer to create a user account;wherein the wallet is generated by the equity conversion computer.

14. The method of claim 1 wherein the step of transmitting the property profile to the user computer further comprises: the equity conversion computer receiving a confirmation from the user computer related to the property profile.

15. A system for automatically tokenizing property rights to convert to a crypto currency with a computer having access to a network, the system comprising: an equity conversion computer having a storage and coupled to a network;property intake software executing on said equity conversion computer presenting a property information intake page to a user computer via the network and associated with a user account having an electronic wallet, the property information intake page comprising a plurality of property information fields;said property intake software saving property information input into the plurality of property information fields on the storage in a first format;said property intake software automatically generating a property profile based on the property information saved on the storage and transmitting the property profile to the user computer;property conversion software executing on said equity conversion computer generating documents granting property rights associated with the property profile to a governing entity;said property conversion software generating recordation documents for recording the property rights with a government recordation computer;said property conversion software generating a smart contract associated with the property rights;said property conversion software generating tokens associated with the smart contract to generate tokenized property rights;said property conversion software recording the smart contract in blockchain; andsaid property conversion software transferring the tokens to a wallet saved on the storage of the user computer.

16. The system of claim 15 wherein: said property transfer software executing on said equity conversion computer displays the tokens associated with the smart contract for purchase;said property transfer software receiving a first monetary value from a rights purchaser computer;said property transfer software transferring a second monetary value to the wallet; andsaid property transfer software transferring the tokens from the wallet to the rights purchaser computer.

17. The system of claim 15 wherein when said property conversion software generates tokens, the tokens comprise: parent tokens; andchild tokens.

18. The system of claim 15 wherein the property rights comprise real property rights and the governing entity comprises a Home Owners Association (HOA) or a Property Owners Association (POA).

19. The system of claim 18 wherein the tokenized real property rights are selected from the group consisting of: surface rights, subsurface rights, digital rights of display and combinations thereof.

20. The system of claim 19 wherein the surface rights are selected from the group consisting of: crops, livestock, timber, easement, carbon sink and combinations thereof.

21. The system of claim 19 wherein the subsurface rights are selected from the group consisting of: water, mineral, storage, easement, carbon sink, and combinations thereof.

22. The system of claim 18 wherein if the governing entity for the jurisdiction in which the real property rights are located does not exist: said property conversion software automatically generates governing entity documents to form the governing entity, the governing entity documents formatted in a second format to be automatically received by a government recordation computer; andsaid property conversion software filing the governing entity documents with the government recordation computer.

23. The system of claim 15 wherein the electronic wallet comprises Anti-Money Laundering (AML) and Know Your Client (KYC) information.

24. The system of claim 15 further comprising: account creation software executing on said equity conversion computer, said account creation software generating login credentials associated with the user accessing the equity conversion computer to create a user account;wherein the wallet associated with the user is generated by the account creation software.

25. The system of claim 15 wherein the step of transmitting the property profile to the user computer further comprises: said property intake software receives a confirmation from the user computer related to the property profile.