Real Estate Protocols

Standardized workflows that sequence principles into repeatable methods.

Protocol Categories

Category	What It Covers	Key Protocols
Property Lifecycle	Acquisition → Operation → Disposition	Due diligence, onboarding, exit
Tokenization	Issuance → Trading → Compliance → Redemption	SPV setup, minting, secondary markets
Risk Management	Appraisal → Insurance → Verification	Valuation, underwriting, inspection
Data Operations	Capture → Validate → Store → Distribute	Sensor deployment, oracle feeds
Payment Automation	Collection → Distribution → Reconciliation	Rent, commissions, yields

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Property Lifecycle Protocols

Acquisition Protocol

1. IDENTIFY
   └─► Source opportunities (MLS, off-market, distressed)
   └─► Initial screening (location, price, condition)

2. ANALYZE
   └─► Financial modeling (cash flow, cap rate, IRR)
   └─► Comparable analysis (traditional + oracle data)
   └─► Risk assessment (market, physical, legal)

3. VERIFY
   └─► Title search (traditional or on-chain)
   └─► Physical inspection (human + sensor baseline)
   └─► Legal review (encumbrances, zoning, compliance)

4. TRANSACT
   └─► Negotiate terms
   └─► Escrow/smart contract setup
   └─► Settlement (traditional or atomic swap)

5. ONBOARD
   └─► Sensor deployment (if DePIN-enabled)
   └─► Property management integration
   └─► Tokenization (if applicable)

Operation Protocol

Activity	Traditional	Protocol-Enabled
Rent Collection	Manual invoicing, bank transfers	Smart contract auto-debit
Maintenance	Reactive, tenant-reported	Predictive, sensor-triggered
Tenant Screening	Credit check, references	On-chain history, reputation score
Lease Management	Paper contracts, manual tracking	NFT leases, automated renewals
Reporting	Quarterly manual reports	Real-time dashboard, on-chain data

Disposition Protocol

1. PREPARE
   └─► Valuation (AI + human appraisal)
   └─► Documentation (property data package)
   └─► Marketing strategy (tokenized or traditional)

2. MARKET
   └─► List on appropriate platforms
   └─► Qualify buyers/investors
   └─► Conduct showings/due diligence

3. NEGOTIATE
   └─► Price and terms
   └─► Contingencies
   └─► Timeline

4. CLOSE
   └─► Title transfer (deed or token)
   └─► Payment settlement
   └─► Handoff to new owner

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Tokenization Protocols

Issuance Protocol

1. LEGAL STRUCTURE
   └─► Form SPV (LLC, LP, or equivalent)
   └─► Prepare offering documents
   └─► Regulatory compliance (Reg D, Reg A+, Reg S)

2. TECHNICAL SETUP
   └─► Select blockchain (Sui, Ethereum, Polygon)
   └─► Deploy smart contracts
   └─► Configure token parameters (supply, decimals, metadata)

3. PROPERTY PREPARATION
   └─► Appraisal and valuation
   └─► Insurance and encumbrance verification
   └─► Sensor deployment (if applicable)

4. MINTING
   └─► Generate tokens representing ownership
   └─► Allocate to initial investors
   └─► Enable secondary trading (if applicable)

5. ONGOING
   └─► Yield distribution automation
   └─► Governance setup
   └─► Reporting and compliance

Trading Protocol (Secondary Markets)

Step	Action	Smart Contract Function
List	Owner posts sell order	createOrder(tokenId, price, quantity)
Match	Buyer accepts or bids	matchOrder(orderId) or placeBid()
Verify	Compliance check	checkCompliance(buyer, seller)
Settle	Atomic swap	executeSwap(payment, tokens)
Record	Update ownership	transfer(from, to, amount)

See Tokenization Platforms for implementation examples.

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Risk Management Protocols

Valuation Protocol

Method	Input	Output	Use Case
Traditional Appraisal	Comps, physical inspection	Point estimate, report	Mortgage, sale
AVM (Automated)	MLS data, public records	Confidence interval	Screening, monitoring
Oracle Feed	Sensor data, market data, AI model	Real-time estimate	DeFi collateral, trading
Hybrid	All above	Weighted composite	High-stakes decisions

Insurance Protocol

TRADITIONAL                      PARAMETRIC

Claim filed ───────────────     Event occurs ──────────────
      │                               │
      ▼                               ▼
Adjuster assigned                Oracle verifies
      │                               │
      ▼                               ▼
Inspection (days)                Smart contract triggers
      │                               │
      ▼                               ▼
Claim approved/denied            Payout automatic
      │                               │
      ▼                               ▼
Payment (weeks)                  Payment (minutes)

Verification Protocol

What	Traditional	Protocol-Enabled
Identity	Driver's license, SSN	zkLogin, on-chain credentials
Income	Pay stubs, tax returns	Bank feed attestation
Rental History	References, credit report	On-chain rental history
Property Condition	Inspector report	Sensor baseline + attestation
Ownership	Title search	On-chain registry lookup

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Data Operations Protocols

Sensor Deployment Protocol

1. SURVEY
   └─► Identify data capture points
   └─► Select appropriate sensors
   └─► Plan connectivity (WiFi, LoRa, cellular)

2. INSTALL
   └─► Physical mounting
   └─► Network configuration
   └─► Calibration and testing

3. INTEGRATE
   └─► Connect to data pipeline
   └─► Map to property digital twin
   └─► Configure alerts and thresholds

4. MAINTAIN
   └─► Monitor health and connectivity
   └─► Replace/recalibrate as needed
   └─► Update firmware

Oracle Feed Protocol

Stage	Action	Verification
Capture	Sensors collect raw data	Device attestation
Aggregate	Multiple sources combined	Outlier detection
Validate	Cross-reference with external data	Consensus mechanism
Publish	Push to blockchain	Cryptographic signature
Consume	Smart contracts read data	Staleness check

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Payment Automation Protocols

Rent Collection Protocol

1. INVOICE
   └─► Smart contract generates monthly charge
   └─► Tenant notified via app/email

2. COLLECT
   └─► Auto-debit from linked account
   └─► Or: Tenant initiates payment
   └─► Stablecoin or fiat accepted

3. DISTRIBUTE
   └─► Property expenses deducted
   └─► Yield streamed to token holders
   └─► Reserve allocation

4. RECONCILE
   └─► On-chain record created
   └─► Financial reporting updated
   └─► Tax documentation generated

Commission Protocol

Event	Trigger	Payout
Listing Signed	Contract executed	Listing agent advance (optional)
Offer Accepted	Both parties sign	Escrow funded
Closing	Title transferred	Commission released automatically
Referral	Tracked via on-chain attribution	Referral fee distributed

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Activity-to-Player Matrix

Activity	Buying Agent	Listing Agent	Appraiser	Inspector	Title	Lender	Manager
Property Search	●
Valuation	○	○	●	○		○
Inspection	○			●		○
Title Search					●	○
Financing	○		○		○	●
Closing	○	○			●	●
Rent Collection							●
Maintenance				○			●
Tenant Screening							●

● = Primary responsibility | ○ = Supporting role

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Deep Dives

• Tokenization — Platforms, regulations, case studies

Context

• Performance — How to measure protocol effectiveness
• Players — Who executes these protocols
• Knowledge Stack — How protocols become standards