Patent 3: Blockchain-Based Title Assurance System
Patent 3: Blockchain-Based Title Assurance System and Method. Inventor: Sean Lee Combs, HOM DAO Foundation, USPTO Patent Filing #18/399,008
This patent offers an innovative alternative to traditional property title assurance processes in the United States and European Union. It leverages blockchain, smart contracts, and legal opinions to provide property title assurance without traditional title insurance. By combining these technologies, it reduces reliance on intermediaries, empowers property owners, and maintains an immutable title history. This system aligns with legal precedents while incorporating blockchain's transparency and efficiency.
Claims
Claim 1: A method for managing property title assurance in a blockchain-based system, comprising:
- Storing an Abstract of Title in a blockchain as a non-fungible token (NFT), wherein the Abstract of Title represents ownership and title history of a property.
- Verifying the identity and professional status of a lawyer who creates the Abstract of Title using third-party Know Your Customer (KYC)/Anti-Money Laundering (AML) verification.
- Associating the NFT with the lawyer's verified identity, professional status, and the property to which the Abstract of Title corresponds.
- Facilitating the transfer of the NFT representing the Abstract of Title between property owners through blockchain transactions.
- Recording additional property-related claims, liens, encumbrances, easements, or other title-related information on the blockchain associated with the NFT.
- Automatically updating the NFT and the associated title information in real-time as new transactions or claims are recorded on the blockchain.
- Providing transparent and immutable property title assurance through the blockchain, eliminating the need for traditional title insurance.
Claim 2: The method of Claim 1, further comprising verifying the identity and professional status of multiple lawyers who create Abstracts of Title for different properties, and associating each NFT representing an Abstract of Title with the corresponding lawyer's verified identity and professional status.
Claim 3: The method of Claim 1, wherein the NFT representing the Abstract of Title includes metadata containing information about the property, transaction history, owner details, and the lawyer's identity and professional status.
Claim 4: The method of Claim 1, wherein the blockchain-based system uses smart contracts to automate the verification process of lawyers' identity, professional status, and the transfer of NFTs representing Abstracts of Title.
Claim 5: The method of Claim 1, wherein the blockchain-based system allows property owners to query and view the entire title history, including recorded claims and transactions, associated with their property by referencing the NFT representing the Abstract of Title.
Claim 6: A non-fungible token (NFT) representing an Abstract of Title in a blockchain-based system, comprising:
- Metadata containing information about a property, including its ownership and title history.
- Verification data confirming the identity and professional status of the lawyer who created the Abstract of Title using third-party Know Your Customer (KYC)/Anti-Money Laundering (AML) verification.
- A reference to the lawyer's verified identity, professional status, and the specific property to which the Abstract of Title corresponds.
- A linkage to recorded property-related claims, liens, encumbrances, easements, or other title-related information on the blockchain.
- Mapping of NFT to dual-DTC system to provide real-time updating capability to reflect new property transactions or claims recorded on the blockchain.
Claim 7: The NFT of Claim 6, wherein the blockchain-based system employs smart contracts to automate the verification process of lawyers' identity, professional status, and the transfer of NFTs representing Abstracts of Title.
Claim 8: The NFT of Claim 6, wherein the blockchain-based system enables property owners to access and review the complete title history of their property by referencing the NFT representing the Abstract of Title.
These claims outline the unique features and methods of the Title Abstract invention, emphasizing its blockchain-based approach to property title assurance, lawyer verification, and real-time title updates.
Illustrations
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