You secured your deed on the blockchain. Now, three years later, you are ready to sell. Does your Tier 2 NFT complicate the sale? Do you need to transfer it to the buyer? Here is exactly what happens — and why it actually creates more value, not less.
You made a smart decision. Three years ago, you secured your property deed on the blockchain through PropyKeys Tier 2 — encrypting your deed on IPFS and minting it as an immutable onchain title. You have been protected from deed fraud, county registry hacks, and fraudulent transfers ever since. Now you are ready to sell. And you have one very reasonable question: what happens to that blockchain record?
The short answer is this: your Tier 2 deed NFT does not block, complicate, or delay your home sale in any way. The traditional real estate closing process proceeds exactly as it always has. But understanding the full picture — what happens to the NFT, what the new buyer needs to know, and what opportunities this creates — is worth a few minutes of your time.
First, Understand the Difference Between Tier 2 and Tier 3
PropyKeys operates on a three-tier system, and the tier you hold determines what happens at sale. Tier 2 (Deed Onchain) is a fraud-protection and verification record — it is not a legal replacement for the traditional deed. Tier 3 (Asset Onchain / RWA) is a full property tokenization where the NFT itself becomes the legal ownership vehicle. These are fundamentally different things.
| Tier | What It Is | What Happens at Sale |
|---|---|---|
| Tier 1 — Address Onchain | Property address registered on Base blockchain | Stays in seller's wallet as a historical record. Can be transferred to the new owner optionally. |
| Tier 2 — Deed Onchain | Deed encrypted on IPFS, minted as immutable onchain title | Traditional sale proceeds normally. NFT is burned by Propy after closing. |
| Tier 3 — Asset Onchain (RWA) | Property fully tokenized as a Real World Asset NFT | The NFT IS the sale. Transferring the NFT to the buyer = transferring the property. No traditional closing required. |
Most ChainedDeed clients hold Tier 1 and Tier 2. This guide focuses on that scenario — the one that applies to the vast majority of homeowners who have secured their deed onchain without fully tokenizing their property as an RWA.
The Tier 2 Seller's Step-by-Step Process
Step 1: List and Market Your Home Normally
Work with your real estate agent to list and market your property exactly as you would in any traditional sale. Your Tier 2 blockchain record does not appear on the MLS, does not affect your listing price, and does not change any aspect of the marketing process. It is a background protection layer — invisible to the market, but working for you.
Step 2: Mention It to Your Title Company
When you open escrow, inform your title company that the property has a Tier 2 onchain deed record on PropyKeys. Share the link to your onchain record (available in your wallet or on the PropyKeys dashboard). This is not a legal requirement, but it is good practice — and it can actually speed up the title search. The title officer can instantly verify your ownership history onchain rather than waiting for county records to be pulled.
Pro tip: If you use Propy's own licensed title and escrow company for your closing, they handle the onchain component natively. They will record the deed transfer both at the county level and on the blockchain simultaneously — giving the new buyer an immediate onchain ownership record.
Step 3: Close the Sale Through Normal Channels
The closing proceeds as it always has. The county records the new deed in the buyer's name. Funds are disbursed. Keys are exchanged. Your Tier 2 blockchain record has served its purpose — protecting your ownership from the day you minted it to the day you signed the closing documents.
Step 4: Notify Propy After Closing
After the sale closes, contact Propy to notify them that the property has changed hands. Propy will then burn — permanently destroy — your Tier 2 deed NFT. This is the correct and expected outcome. The NFT represented your ownership, and since you no longer own the property, the record is retired. This is not a loss; it is the system working exactly as designed.
What if you forget to notify Propy? The Tier 2 NFT will simply remain in your wallet as a historical record. It does not transfer any rights to anyone else, and it does not affect the new owner's legal title. However, notifying Propy is best practice so the record is properly closed out.
Step 5: The New Owner Starts Fresh
The new buyer inherits a home with a clean, verifiable blockchain ownership history — but no active deed protection of their own. If they want Tier 2 protection, they will need their own mint.
What About the Tier 1 NFT?
The Tier 1 NFT — the address registration — is a separate token from the Tier 2 deed NFT. It is not automatically burned at sale. You have two options:
- Keep it in your wallet as a historical record of your ownership of that address. It has no ongoing legal significance once you no longer own the property.
- Transfer it to the new owner via any Base-compatible NFT marketplace (such as OpenSea). This is simply a courtesy gesture so the new owner has the address registration in their own wallet if they choose to pursue their own deed protection in the future.
Does the Blockchain Record Affect My Property Taxes or Title Insurance?
No, on both counts. Property taxes are assessed by your county based on the official recorded deed — the blockchain record has no bearing on this calculation. Title insurance is issued based on the traditional title search conducted by a licensed title company. The Tier 2 blockchain record is an additional layer of protection and verification, not a replacement for any existing legal or financial instrument.
Important: PropyKeys Tier 2 is not a substitute for title insurance. It is a complementary fraud-prevention and verification tool. Always maintain standard title insurance coverage as part of your property ownership.
Summary
- Tier 2 does NOT block or complicate a traditional home sale.
- The traditional closing process — county recording, title insurance, escrow — proceeds exactly as normal.
- After closing, notify Propy and they will burn the Tier 2 deed NFT.
- The Tier 1 address NFT stays in your wallet or can be transferred to the new owner.
- The new buyer will need their own Tier 2 mint if they want blockchain deed protection.
- Using Propy Title & Escrow for your closing creates the cleanest dual-record (county + blockchain) transfer.
- Property taxes and title insurance are unaffected by the blockchain record.