What is a real estate token and what does it represent?

A real estate token is a digital unit on a blockchain. It is similar to a digital share or a claim. The exact meaning of the token depends on the legal setup of the project.

In many cases, one token equals one share in the company that owns the property. In other cases, a token may represent a right to a part of the rental income, a share of sale profit, or a type of debt, like a loan.

The rights of the token are described in legal documents, such as a shareholder agreement, prospectus, or token terms. The blockchain only stores who owns which token. The legal documents explain what those tokens give you in the real world.