Terra Land is an internet platform designed to facilitate transactions utilising blockchain technology. It allows its users to purchase a fraction or an entire real estate property. Additionally, it will also have a secondary market for users to buy and sell their share of the real estate to other interested users. This ownership is represented by Real Property Tokens (RPTs), which can also be used in the Loan Farming lending protocol.
Registering on the platform is free while investing in real estate requires a certain amount of capital to begin, per the specific case of each property.
If the majority (51%) of property owners are in favour of Loan Farming, owners can take out a loan in UST. After depositing the RPTs as collateral, the user can take out their loan and use it freely. Loans have to be repaid within their given period, usually 12 months.
Any person that completes KYC/AML. Due to legal reasons, citizens of the following countries cannot participate in the property fundraising (but they can buy TLAND tokens):
- Cote D’Ivoire (Ivory Coast)
- The Democratic Republic of Congo
- North Korea
Users' personal data is solely used for the verification of the future property owner’s identity and the completion of option shares in the user's name at the moment of investing in a given property.
The Terra Land platform will ask for some/all of the following information:
- First Name
- Last Name
- Identification Number (if applicable)
- ID Number or Passport Number
- Phone Number
- Email Address
For invested funds into real estate through the Terra Land platform users receive security tokens, which are reflective of option shares in a Simple Joint Stock (special purpose vehicle) created for each real estate property. Investors also receive a contract confirming the transaction.
A wallet is a central spot to store a user's cryptocurrencies (private keys), from which the wallet owner is also able to deposit and withdraw cryptocurrencies at will. It is required for investment in real estate. As of now, you can invest through Terra Land using UST based on Terra Blockchain, while the future holds potential for using other currencies from different blockchains.
The minimum threshold is based on each individual real property, while each security token is purchased at 1 UST.
Terra Land facilitates the sale of real estate entirely online through the use of blockchain technology. Properties available on your platform come from all around the world. Tokenised real estate allows for dividing property to create equal shares valued at 1 UST per share. Dividing property that used to be practically unattainable now allows it to be part of a diversified investment portfolio.
The base asset created are option shares in a special purpose vehicle created for each property. This allows for increased liquidity than in the traditional market. Investors, after going through the KYC process and accepting the electronic agreement, receive Real Property Tokens (RPTs) reflecting the ownership of share options.
Choose a property offered on the website (www.terraland.io). Decide on how much capital you would like to invest, ensuring to meet the minimum investment threshold, and up to 100% of the whole property (to become sole owner). If you haven’t done it before, at this point the investor has to complete a full verification including KYC. You sign an electronic agreement on call option shares in a given property while depositing funds into the smart contract. Once the full amount is fundraised, the smart contract closes the fundraising event and returns to the investor security tokens (RPTs) which confirm ownership in the property. In the event of not collecting the full amount of required funds the smart contract closes and returns the funds to the investors.
In the event the full amount is not collected in the given time frame, the smart contract automatically returns the funds to the investors.
Real Property Tokens (RPTs) – Every investor purchasing real estate through Terra Land, whether it be a fraction or as a whole, will receive RPTs as a reflection of their share of share options. Each token is specifically assigned to each property. The agreement is generated automatically through the platform, where the information is automatically pulled from the KYC. RPTs are security tokens and will be tradeable on the secondary market. This will provide incredible liquidity to the traditional market, a world first and only available through Terra Land. The RPTs are created in CW20 standard, used in the Terra Network.
Native TLAND Token – Terra Land also released its own token TLAND. It is directly related to the utility provided to it throughout the Terra Land platform. The token is deflationary, used in Loan Farming Protocol and can be staked. Of course, this is only the beginning, as more and more utility is added to the TLAND.
Properties are managed by professional partners in the business of property/building management in the interest of leasing and promoting commercial premises.
The platform is for now only for personal properties, and households.
Your tokens will be directly deposited to the wallet that participated in the fundraising/purchasing of the property and was linked to the user's profile on Terra Land.
You can keep it in your wallet while receiving rental gains. Users can also buy/sell their tokens on the secondary market. Investors are also always able to realise their share option and become official part owners of the special purpose vehicle designed for the property. RPTs are also used as collateral for Loan Farming.
Money is returned if the fundraising is not successful (not 100% completed) for the given property, at which the smart contract will return the investor's share of funds. In the event of already having received RPTs, users can sell these tokens on the secondary market to exit their position.
The rental yield, also named Net Rent Income throughout the platform, is distributed at specific intervals decided upon for each property, usually monthly or quarterly. It is automatically done through the smart contract, where funds are directly deposited to the given wallet attached to the user's account on Terra Land.
Yes, users can sell their RPTs on the secondary market to exit their position.
Investors can track all their Terra Land related investments in the My Investment tab.
You can use the secondary market from the moment you pass KYC/AML. The full functionality will be completed and available in the 3rd/4th quarter of 2022.
The special purpose vehicle which purchases the property. The legal entity concludes a civil-legal contract with the investors, pursuant to which all shares are subject to the necessity to provide the owners of Real Property Tokens their share at request.
Each user owns a digital document, the aforementioned civil-legal contract with the special purpose vehicle, and can exercise their right to their share of the legal entity, even if the platform ceases to exist.
Real estate for the platform is meticulously chosen by a team of professionals from that area with high expectations and criteria that must be met during the decision making. These include: the quality of construction, commercial attractiveness, expected return, price, etc. Each property goes through a due diligence process.
Properties, as with any other asset, are subject to growth in value, as such a change in price in the medium to long term is of course possible. The platform will publish reports for each properties’ owners describing the local real estate markets. RPT holders will decide if at a given moment the property should be sold, and would of course take part in the rewards of this transaction.