Home General Help 🏠 Property Buyout Process

🏠 Property Buyout Process

Last updated on Feb 09, 2026

Property Buyout Process (Support Overview)

What Is a Property Buyout?

A property buyout is how a single buyer acquires 100% of a tokenized property by purchasing all outstanding tokens from current holders.

It uses a tender offer model, similar to public company acquisitions:

  • A buyer escrows the full purchase price in USDC on-chain

  • Token holders decide whether to sell

  • Once 51% of tokens are sold, the buyout automatically completes

  • Remaining holders are bought out at the same price

Important:
👉 51% is the execution trigger, not a requirement to start.
Buyers do not need to own tokens beforehand.

Why Buyouts Exist

Without a buyout mechanism, one token holder could block a full property sale forever.

The buyout system ensures:

  • A clear, on-chain path to full acquisition

  • Buyer funds held in smart contract escrow (not by SecondaryDAO)

  • Market price protection (no lowball offers)

  • Compliance-approved buyers only

  • Equal pricing for all holders

  • Automatic settlement once the threshold is reached

Key Rules (At a Glance)

  • Buyers must pass KYC/AML approval

  • Buyer escrows 100% of purchase price upfront

  • Offer price must be ≥ last trade price (or original sale price)

  • Token holders can sell voluntarily

  • At 51% sold, remaining tokens are force-purchased

  • All sellers receive the same price

  • Funds are either paid to sellers or refunded to buyer — never trapped

For Buyers: How It Works

1. Get Approved

Only compliance-approved wallets can create buyout offers.

2. Set Your Price

  • Price is per token, in USDC

  • Must meet the price floor (market protection)

3. Deposit Funds

You escrow:

  • Token purchase amount

  • Buyer fee

  • Exit premium (only charged on completed purchases)

4. Create the Offer

You choose:

  • Price per token

  • Offer duration (1–90 days)

Funds move into the smart contract in the same transaction.

5. Holders Sell (Optional)

Token holders may sell at any time during the offer.

6. 51% Trigger → Buyout Completes

Once 51% of tokens are sold:

  • Remaining tokens are bought automatically

  • Sellers are paid immediately

  • Buyer receives 100% ownership

  • Fees are settled on-chain

  • Any unused funds are refunded

7. If the Offer Expires or Is Cancelled

  • Unused USDC is returned

  • Tokens already purchased stay with the buyer

  • No funds are lost or locked

What Buyers Receive on Completion

  • 100% of property tokens

  • Settlement snapshot (reserves, renter deposits, balances)

  • Unused USDC refund (after fees)

Buyers then choose how the property is handled going forward.

Post-Buyout Options

Continue Managed (Default)

SecondaryDAO continues operations:

  • Rent collection

  • Distributions (100% to buyer)

  • Reserve management

  • Renter deposit custody

No transition fee.

Exit / Transfer Out

Buyer takes full control:

  • Reserve funds transferred

  • Renter deposits transferred

  • Services discontinued

  • Transition fee up to 5% applies

Buyer assumes all legal and operational obligations.

For Token Holders

Voluntary Sale

You can sell tokens into an active offer:

  • Paid instantly in USDC

  • Seller fee deducted

  • Same price as everyone else

Forced Buyout

If 51% is reached:

  • Remaining tokens are automatically sold

  • Same price and fee apply

  • No action required

If Offer Fails

If 51% is never reached:

  • Nothing happens to unsold tokens

  • Voluntary sales remain final

Fees Summary

FeeWho PaysWhenSeller FeeToken holderOn each saleBuyer FeeBuyerOnly if buyout completesExit PremiumBuyerOn tokens acquiredTransition FeeBuyer (Exit mode only)On asset transfer

All fees are transparent and enforced on-chain.

Common Questions

Do buyers need to own tokens first?
No. This is a tender offer. Funds + approval matter, not prior ownership.

Can buyers change the price later?
No. Offers are immutable once created.

What if no one sells?
Offer expires, buyer gets funds back.

Can I refuse a forced buyout?
No. Once 51% is reached, the buyout completes for everyone.

Are buyer funds safe?
Yes. Funds are locked in audited smart contracts and can only be:

  • Paid to sellers

  • Refunded to buyer

  • Paid as defined fees