SYSTEM AND METHOD FOR CREATING ELECTRONIC REAL ESTATE REGISTRATION

• US 20100198714A1
• Filed: 04/05/2010
• Published: 08/05/2010
• Est. Priority Date: 11/30/2004
• Status: Active Grant

• Current Assignee: Michael Dell Orfano
• Original Assignee: Michael Dell Orfano
• Inventors: Orfano, Michael Dell
• Granted Patent: US 8,160,944 B2
• Time in Patent Office: Days
• US Class Current: 705/35
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 20/382 insuring higher security of transaction
• CPC Class Codes: G06Q 30/0278 Product appraisal
• CPC Class Codes: G06Q 30/06 Buying, selling or leasing transactions
• CPC Class Codes: G06Q 30/0601 Electronic shopping [e-shopping]
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof
• CPC Class Codes: G06Q 50/16 Real estate

Abstract

A system for providing a registered land asset includes a property transaction database in communication with a computer network the property transaction database provides information related to transactions associated with each registered land asset parcel, each land parcel having a registered land asset identifier representing global coordinates particular to the parcel. The system also includes a location characteristic database in communication with the computer network. The location characteristic database provides socioeconomic data regarding the location wherein the land parcel associated with the registered land asset is situated. A registered land asset contract may give a leaseholder an option to purchase the land by the end of a given term. A computer receives data from the property transaction database and the location characteristic database via the computer network and calculates prices and values associated with a registered land asset contract associated with the land parcel and a registered land asset contract is recorded in association with the land asset identifier corresponding to the land parcel in an electronic land title registry in communication with the computer network.

Claims

1. A system for establishing an electronic land title registry, the system comprising:

a Registered Asset Identifier (RAI) including a geo-referenced address based on a global coordinate position that specifies locations on the surface of the Earth corresponding to land subject to a land title deed, wherein the land title deed and the RAI is recorded in association with one another in a local land court so as to legally associate the land title deed with the RAI;

an electronic land title registry database operatively connected with a party-accessible computer network, to which the RAI is transmitted, in communication with a land title registry process that is adapted to store electronic documents associated with the RAI and allow retrieval of the documents based upon entry by an accessing party of predetermined information associated with the RAI;

means for transmitting, over the party-accessible computer network, an electronic version of a land title deed and a registered land asset contract associated with the land to be recorded in association with the RAI as a registered land asset, wherein the registered land asset defines both a leasehold estate subject to a lease and a purchase option and the land subject to the land title deed upon which the leasehold estate resides, wherein the registered land asset contract provides a leaseholder an option to purchase the land by an end of a given term and the registered land asset is available for purchase by a purchasing party and sale by a selling party by accessing the corresponding RAI through a database that is available via a network so as to facilitate one of either a purchase transaction or sale transaction;

means for transmitting, over the party-accessible computer network, from a recording party the electronic version of a land title deed and the registered land asset contract associated with the land to be recorded in association with the RAI as the registered land asset;

means for receiving, over the party-accessible computer network, and appending other information, from an appending party, relating to the registered land asset and corresponding RAI, wherein the other information includes appraisal information related to an appraised value the land subject to the land title deed including at least (a) a market ground rent of the land subject to the land title deed, (b) a land capitalization rate and (c) a fee simple land value of the land subject to the land title deed and the leasehold estate

an interim pricing process in communication with the land title registry database that determines a community score (cScore) that modifies the calculated market land value for each registered land asset based upon externalities associated with a property underlying the registered land asset including associated community data, the cScore being associated with each registered land asset within a community subject to the community data;

a mechanism that performs, at a subsequent time, for a subsequent accessing party, over the party-accessible computer network, the electronic land title registry database, at least one of retrieving, verifying, analyzing, and gathering appended information associated with the registered asset in association with the RAI and the cScore; and

a clearing and settlement process of the of the registered land asset, the recorded land asset contract and the appended information associated with the registered land asset and corresponding RAI, that is facilitated, at a subsequent time, over the party-accessible computer network, by at least one of the recording party, the appending party, the accessing party, and the subsequent accessing party.

2. The system as set forth in claim 1 wherein the cScore further defines a measure of material impacts on the land title deed associated with the RAI, based upon dynamic external economies and diseconomies associated with the community and other location-related externalities, that is adjustable over time, the cScore being recorded with predetermined information and electronic documents associated with the RAI so as to provide each of the accessing party and the subsequent accessing party qualitative and quantitative information associated with the RAI.

3. The system as set forth in claim 2 further comprising means for updating the cScore based upon updated information at a subsequent time.

4. The system as set forth in claim 1 wherein the geo-referenced address comprises a universal transverse mercator (UTM) grid code.

5. The system as set forth in claim 1 wherein the RAI is appended with a sequential equity allocation lien (the “

SEAL”

) identifier.

6. The system as set forth in claim 5 wherein the SEAL identifier includes at least one of (a) a date associated with the SEAL identifier, (b) a time associated with the SEAL identifier, (c) a document associated with the SEAL identifier, (e) a document type associated with the SEAL identifier and (f) a document preparer associated with the SEAL identifier.

7. The system as set forth in claim 1 wherein the RAI is appended with a vendor identification number (the “

VIN”

).

8. The system as set forth in claim 1 further comprising means for recording an assignment of the registered land asset associated with the registered land asset contract in association with the RAI in the electronic land title registry.

9. The system as set forth in claim 1 further comprising a property transaction database, associated with the electronic land title registry database constructed and arranged to allow access over the communications network by each of the recording party, the accessing party, the subsequent accessing party and the appending party, by providing information related to transactions associated with each RAI.

10. The system as set forth in claim 9 further comprising a location characteristic database associated with the electronic land title registry database that provides socioeconomic data associated with each RAI.

11. The system as set forth in claim 10 further comprising means for calculating values for each registered land asset so as to generate a market land value associated with the RAI on the basis of information from the property transaction database and the location characteristic database.

12. The system as set forth in claim 11 further comprising an option pricing process that employs the market land value to generate an option price for the leaseholder to purchase the land, and means for appending the option price in association with the RAI in the land title registry database.

13. The system as set forth in claim 1 wherein the interim pricing process approximates the cScore for each registered land asset in an absence of a predetermined amount of the community data or transaction data with respect to the registered land asset.

14. The system as set forth in claim 13 further comprising means for offering the registered land asset contract via the land registry database for purchase thereof, and means for associating the investor as a party capable of accessing the registered land asset database over the communications network.

15. The system as set forth in claim 14 wherein the electronically stored registered land asset contract associated with the RAI defines a financial instrument adapted for public trading and electronic exchange.

16. The system as set forth in claim 1 wherein at least one of the accessing party and the subsequent accessing party is at least one of a holder of a leasehold estate on the registered land asset or a land asset investor.

17. The system as set forth in claim 1 wherein the interim pricing process includes means for obtaining, via the electronic computer network, at least two of;

(i) a market value of the land subject to the land title deed, (ii) a market ground rent associated with the land subject to the land title deed, (iii) a land capitalization rate associated with the land subject to the land title deed, and means for calculating a price associated with an option to purchase the land subject to the land title deed at the end of a predetermined term.

18. The system as set forth in claim 17 wherein further comprising means for obtaining, via the electronic computer network, with respect to the land subject to the land title deed, at least one of a purchase option term, a prevailing investor cost of capital, prevailing mortgage market terms, a market land value appreciation rate, and means for calculating a land investment value associated with a purchase of the land subject to the land title deed.

19. The system as set forth in claim 1 wherein the land subject to the land title deed is separate from ownership of improvements residing upon the land subject to the land title deed and further comprising an improvements title deed that is conveyed on the improvements and is associated with the RAI.