Billions of dollars worth of property across the world is stuck in a legal limbo QouteCoin
New York City: Billions of dollars worth of property across the world is stuck in a legal limbo. One Silicon Valley startup, Fraction, thinks it can unlock that value by combining blockchain technology with a tradition older than the Magna Carta: the use of shared property ownership to keep people from getting wiped out by crippling debt. In 1899, a group of farmers on St. Paul Island off Alaska organized themselves into a cooperative and bought their land collectively. The company has raised $1 million in seed funding, and plans to launch its first service later this year.”
Billions of dollars worth of property across the world is stuck in a legal limbo.
The laws governing property ownership have evolved over centuries in England, but have remained rooted in a feudal system that no longer makes sense. This means that if you inherit property, you are still legally dependent on your family members for its upkeep and use. In other words, if one of your relatives dies without leaving a will or trust controlling how they want their assets distributed after they pass away (which is often the case), then those assets could be lost forever because there is no record of who owns them or how much interest they hold within their estate plan.
This situation has resulted in billions worth of real estate being tied up under dispute due to unclear legal rights and obligations associated with inheriting such properties from deceased family members who may not have understood what was required before passing away themselves—or worse yet had no intention whatsoever behind leaving such an important decision up to fate alone!
One Silicon Valley startup, Fraction, thinks it can unlock that value by combining blockchain technology with a tradition older than the Magna Carta: the use of shared property ownership to keep people from getting wiped out by crippling debt.
Fraction is a technology startup that uses blockchain technology to unlock value from property. The company was founded in Silicon Valley and its headquarters are now located in London.
Fraction’s business model centers around a centuries-old legal tradition known as “common ownership” or “common law.” In this system, people who own property together can use it without having to go through formalities like deeds or titles. They simply share it with each other—and the more people who join their collective effort, the more wealth they’ll create together. This has allowed for communities around the world over centuries to thrive on shared resources like land, water rights and even natural resources such as oil (yes).
In 1899, a group of farmers on St. Paul Island off Alaska organized themselves into a cooperative and bought their land collectively.
In 1899, a group of farmers on St. Paul Island off Alaska organized themselves into a cooperative and bought their land collectively. They did this because they wanted to own their land collectively and not rely on an outside party to purchase it for them.
They were able to do this through the use of an investment vehicle called the Alaska Agricultural Finance Company (AAF). The AAF was created by investors in San Francisco who had access to capital from other countries such as Japan and Germany; these investors also provided financing for properties within America’s west coast states such as California, Oregon, Washington state etcetera…
The company has raised $1 million in seed funding, and plans to launch its first service later this year.
The company has raised $1 million in seed funding, and plans to launch its first service later this year.
Fraction is based in San Francisco and has been operating since 2016. It aims to be a marketplace for fractional ownership of real estate investments.
“It’s the way our ancestors lived and survived in many cases,” says Fraction founder Grant Fondo, who is also a clerk at Stanford University’s law school.
Fraction is a startup that uses blockchain technology to unlock the value of property. It’s the way our ancestors lived and survived in many cases, says Fraction founder Grant Fondo, who is also a clerk at Stanford University’s law school. The company has created an app that allows people to buy fractional ownership of real estate, like condos or single-family homes.
Fraction lets you own part of something without having to pay for it all up front—and then sell off your stake when you want more space or money for something else. For example: You might buy an apartment for $1 million with your friend as “friends” on Fraction; if one day she needs more room than what was originally purchased (maybe because her son had outgrown his crib), they can simply sell off her share of the apartment on another platform called Propy (which is also based on blockchain technology).
It sounds simple enough—but what makes this idea revolutionary? In fact, it’s exactly how our ancestors lived long ago!
The idea was to prevent one person from claiming all the land for him or herself, and thus stifling opportunities for anyone else.
The idea was to prevent one person from claiming all the land for him or herself, and thus stifling opportunities for anyone else.
It’s worth noting that this isn’t just a hypothetical scenario—it’s actually happening today in England.
In fact, it’s happening all over Europe! A new report shows how crypto could have an impact on property laws across the continent.
San Francisco Bay Area residents know this well; many condos and co-ops are governed by similar rules.
The problem with these rules is that they can be used to restrict your property rights. For example, if you live in a condo or co-op and want to sell your home, you might need a plan of development that’s approved by the homeowners’ association (HOA). This plan determines what kind of improvements can be made on your property and how much it will cost.
If you don’t have an HOA, then there’s no way for them to approve any changes at all—and if they do approve something like adding another bedroom or changing the layout of your kitchen cabinets…well then guess what? Your new digs won’t look nearly as fresh as those in other buildings where such things are allowed!
So let’s say I’m buying my first home someday; I’d probably want some assurance from whoever owns this place that there won’t be any surprises down the line when someone else buys into their condo/co-op community instead of me doing so myself later on.”
This can make holding a mortgage on fractions like these incredibly complicated, and in some cases almost impossible.
If you’re thinking about getting a mortgage on a fractional property, you may be wondering how this can make holding a mortgage on fractions like these incredibly complicated. In fact, it can make holding a mortgage on fractions like these almost impossible.
Fractional ownership is common in condos and co-ops and was also used as an alternative to traditional mortgages by people who wanted to own their home without having to pay for full ownership upfront. However, there are some major drawbacks to this type of shared ownership that could prevent many buyers from being able to get approved for financing:
- The potential for confusion about who owns what percentage of the building – because each owner doesn’t necessarily have all their shares represented by deeds or other documents signed by everyone else involved (or even know it). This means that if one person dies without leaving specific instructions about how his share should be handled after his death then everything stays unchanged until someone else buys up those shares out from under another person who might otherwise want them back (or simply wants more money).
- How difficult it would be if multiple people died simultaneously which led us into our next question:
This makes it nearly impossible to raise capital using today’s financial tools, and exposes homeowners to financial distress or ruin if they are sued or fall behind on payments.
Fractional ownership allows you to own a piece of property without actually owning the entire house. You can buy into an existing home, or build your own using land purchased from the seller. This means that if you don’t have enough money for a full purchase price, but still want to live in a desirable neighborhood near public transportation and amenities like grocery stores and parks—you can purchase some fractional interest in that property.
Fractional ownership has many benefits for people who are financially distressed or behind on payments:
- It allows homeowners who need cash flow from their homes during difficult times (like unemployment) to stay afloat by renting out rooms while they wait for better times ahead;
- It helps people avoid foreclosure by allowing them time before having any responsibility over their investment; – And finally, it provides liquidity when needed most: during periods of economic hardship where banks aren’t giving loans out freely because demand isn’t there anymore.”
Conclusion
As we’ve seen, there are numerous obstacles to using blockchain to solve this problem. But Fraction is still optimistic that its solution will work. The company has begun working with a handful of developers, and plans to launch the service in the fall of 2019.
