> For the complete documentation index, see [llms.txt](https://whitepaper.sabaiprotocol.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://whitepaper.sabaiprotocol.com/sabai-property/real-estate-tokenization-process.md).

# Real estate tokenization process

Every real estate listing on Sabai Property undergoes three primary stages: [preparation](#preparation), [initial distribution](#initial-distribution), and the [secondary market](#secondary-market).

<figure><img src="/files/r77d7quGmhYWO8exXpFO" alt=""><figcaption></figcaption></figure>

### Preparation

Before gaining access to the platform, the asset and its owner or the holder of the White Label solution from which RWA is deployed undergo rigorous scoring, internal and external audits, as well as asset valuation.

Upon successful completion of all checks, the legal and technical process of formalizing the asset commences. The primary property owner configures directly within Sabai Property or their White Label solution the terms for distributing RWA tokens, additional features, as well as establishing requirements for future asset owners and guarantees ensuring its asset.

Following this, the issuance and placement of RWA tokens occur, awaiting the commencement of primary sales. Subsequently, plans are in place to integrate synchronous processes for asset placement across Sabai Property and other platforms within the Sabai ecosystem, all prepared for RWA deployment.

### Initial distribution

After token issuance, the primary distribution phase commences, which may encompass one or multiple stages, each with its own token volume and price.

In cases where a fully developed asset is featured on the platform, primary distribution typically occurs within a single stage. However, if the property is in the construction or planning phase, the process is usually segmented into several rounds. Each round commonly aligns with a distinct phase of property development: land acquisition, foundation laying, and so forth. Consequently, the token price for RWA may fluctuate in each round, reflecting the escalating assessed value of the completed property segment at each construction stage. If necessary, a minimum and maximum purchase size can be designated for each participant in every round.

### Secondary market

Upon completion of all rounds of primary asset distribution, the asset is considered distributed, initiating the secondary market phase and listing in the corresponding section of Sabai Property.

Users can buy and sell the asset in an order book format with other participants, setting desired prices for the token. At this stage, the asset price is determined by the market.

Nevertheless, users are provided with a recommended price, which is informational in nature, determined through regular reassessment of property value and transmitted to the system via oracles.

The recommended price allows users to make more informed decisions when purchasing or selling RWA tokens, while also reducing the potential for manipulation by major participants.