When a tokenized property is sold, the sale closes in the real world first, then the proceeds flow back to you on-chain. The SPV that owns the building receives the sale money, pays off any debt and costs through the distribution waterfall, and distributes what remains to token holders pro rata. Your tokens are then usually redeemed or burned, because the asset they represented no longer exists. Here is the full sequence.

The sale happens off-chain

A tokenized property is still real property, so the sale is a conventional real-estate transaction - a buyer, a price, a closing. The tokens do not change who can buy the building; they determine who shares the proceeds.

Once the sale closes, the SPV holding the property receives the funds. From there, the on-chain distribution begins. The token is a claim on the SPV, so the SPV is where the money lands first.

The waterfall pays out

Proceeds are distributed in order through the distribution waterfall: sale costs and any mortgage or debt are paid first, then preferred returns if the deal has them, then the remainder to token holders.

So you receive your pro rata share of what is left after senior claims - not a share of the headline sale price. Understanding the waterfall is key to knowing what a sale actually puts in your pocket.

Your tokens are redeemed

Because the token represented a share of that specific asset, once the property is sold and proceeds distributed, the tokens are typically redeemed or burned. The position closes - you have been cashed out.

This is the normal, intended end of a single-asset deal. You should expect it, and the proceeds (usually in a stablecoin) arrive in the wallet that held the tokens.

What you should check beforehand

Before investing, read how a sale is handled: the waterfall order, whether there is a preferred return ahead of you, and how and when proceeds are distributed. These terms decide your outcome at exit.

A sale is the moment the deal's economics become real, so understand them up front. The issuer runs this payout from the other side - see how issuers run the payout.

Where to go next

• Next: how to evaluate a tokenized real-estate deal.
• The issuer's side: how issuers run the payout.
• Glossary: distribution waterfall.

Sources: platform documentation; offering documents, as of 2026.