Overview
If you add a mortgage, lien, or any form of third-party debt to a property associated with a Real-World Asset (RWA) Property Claim, your claim will no longer be valid. To maintain the integrity of the RWA ecosystem, properties must remain 100% unencumbered to qualify for rewards.
This article outlines what happens next, the actions you need to take, and how adding debt affects your ability to earn from an RWA Property Claim.
When Does an RWA Property Claim End?
Your RWA Property Claim automatically becomes ineligible the moment the property is no longer owned "free and clear." Common situations include:
- Taking out a primary mortgage or refinancing an existing one
- Opening a Home Equity Line of Credit (HELOC) or a second mortgage
- Involuntary liens (tax liens, mechanic’s liens, or legal judgments) being placed on the title
- Using the property as collateral for any external business or personal loan
Once the property is encumbered by debt, earnings stop and the claim can no longer remain active.
Next Steps After Adding a Mortgage, Lien, or Debt
If you have recently added debt to your property or a lien has been filed, follow the steps below to stay compliant and avoid account flags.
1. Stop Expecting Earnings
Once the property is no longer 100% unencumbered:
- You will no longer earn rewards or benefits from that RWA
- Any active earnings tied to the property will be discontinued
This happens automatically once the new financial status is detected during verification.
2. Update or Remove the RWA Property Claim
You should promptly:
- Remove the property from your account dashboard or
- Update the claim status to reflect the change in ownership Type
Failing to do so may result in the claim being [paused or flagged] during routine verification checks.
3. Do Not Attempt to Maintain a Claim on Encumbered Property
RWA Property Claims cannot be maintained if a third party has a legal financial interest in the asset.
This includes:
- Waiting for a loan to be “processed” before reporting
- Attempting to keep the claim active while the property is under a lien
- Claiming earnings after a mortgage has been recorded
4. Re-Applying After Debt is Cleared
If the mortgage or lien is eventually paid off in full:
- You must provide a Release of Lien or updated title showing the property is free and clear
- You must submit a new RWA Property Claim for verification
What If You Plan to Add a Mortgage Soon?
If you are in the process of applying for a loan:
- You may continue earning only while the property is verified as 100% unencumbered
- Earnings stop the moment the debt is legally tied to the property title
Important Reminder
100% Unencumbered Ownership = Claim Eligibility.