Want to sell house via token system

Question

Want to sell house via token system

11-Sep-2026 (In Property Law)

Is it legal or not, I want to sell my property via dip system like IPOs

Answers (4)

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Adv. Ravindra Anjaneyulu Adv. Ravindra Anjaneyulu

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Advocate Mrudhula Jahnavi LawRato · Accepted Answer · 2026-09-11T10:40:59+05:30

Answer #2

If by “DIP system” you mean selling your immovable property by inviting multiple investors/buyers to participate digitally, similar to an IPO, the legality depends on the exact structure. You generally cannot treat an individual property like shares of a company or raise money from the public without complying with applicable securities, real-estate, contract, tax and registration laws. If the proposal is simply an online auction/bidding process for selling the property to the highest bidder, that can be structured legally with proper title documents, terms and conditions, KYC, payment mechanism and a registered sale deed. However, if you intend to divide the property into investment units and offer them to the public with an expectation of returns, additional regulatory issues may arise. Before proceeding, have the proposed DIP model and property documents legally vetted.

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Advocate Pavani Kumari LawRato · Accepted Answer · 2026-09-12T15:03:58+05:30

Answer #3

Selling a property through an IPO-like public draw/lottery system is legally risky and should not be undertaken without a detailed legal structure and regulatory review. If buyers pay money merely for a chance to be selected as the purchaser through a random draw, the arrangement may attract the Lotteries (Regulation) Act, 1998, depending on its exact structure. A safer structure would be a transparent sale/tender/auction mechanism, with proper title verification, agreement to sell, consideration and registration. The proposed “IPO model” should be legally vetted before accepting any money or advertising the scheme.

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Advocate Kyrunissa Shaik LawRato · Accepted Answer · 2026-09-23T13:28:49+05:30

Answer #4

If you mean selling your property through a lucky-draw system like an IPO, where many people pay a small amount and one person is selected to get the property, it is legally risky and may not be allowed.

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