- On OpenSea, a German sells a gif NFT, representing a real-world house in Germany, at a starting price of 34 ETH ($74,000)
- To claim the house, one must own the NFT, allowing access to some unlockable contents
- If the new owner wishes to sell the token, the house’s ownership too needs to be handover to the next token owner and so on, as has been mentioned in the sale details
The largest digital marketplace, OpenSea, is now hosting the world’s first-ever sale of a real-world house as a non-fungible token (NFT). Under the ID “Sign-Ugn,” a German has created and uploaded this virtual version NFT, representing a not-so-virtual house situated in Kransberg, Germany, to be auctioned on the peer-to-peer marketplace platform. As assigned, bidding starts from a minimum of 34 ETH ($74,000), and the auction will be concluded by April 24, 2021, at 10:00 p.m. UTC.
Stretching the limits of NFT’s Definition
NFTs are unique crypto tokens that represent any digital content. The peculiar definition, not limiting NFT to anything, in particular, inspired loads of users to test their theories. Initially representing digital art, NFT gradually adopted gifs, music, autographs, articles, even tweets, and as it now seems a virtual representation of real estate too.
The Said House on Sale
The sale is titled “The first real house selling via NFT” and depicts a gif of the house and surrounding views. Based on the details listed by the owner, the house hasn’t been inhabited for a long time and thus needs serious renovations, but “the location is amazing,” in a small German village, near a castle and just a short drive from Frankfurt.
Procedure & Legalities of the Sale
To get the house, one must own the NFT, allowing access to some unlockable contents. After the initial claim and purchase, within six months, the bidder must provide “the personal details required by german law to claim the property” and must own the NFT “during the transfer of ownership.”
The details further include, if the new owner “chooses to sell the token,” they’ll have to “hand over ownership” of the house too, to the next “holder of the token and so on.” In creators words:
“Whoever holds this token in the future has to claim ownership of the property from whoever sold it to them as the legal owner of the property. Whoever sells this token in the future has to be the legal owner of the property and transfer it to the new owner of the token in terms of their agreement.”
NFT Association with Real-World Items?
A few weeks ago, Trending was a digital house NFT sold for $512,000. The NFT, named Mars House, comprised a digital 3D file of the house’s entire layout. And now we have an NFT representing a real-world house. But how can that be?
As evident, NFT uses links to direct the owner to where the digital item or its details is saved, meaning NFTs represent the item owned, redirecting you to the place it digitally exists. And that brings in another flood of questions! In simple words, there’s still a lot of confusion as to what exactly one gets to own after buying an NFT, which needs to be appropriately addressed before the market expands to associate NFT with real-world items.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.