Claiming you have the ability to sell some property when all you actually have is an NFT that purports to represent ownership of the property, but the property itself is in the hands of a government that doesn’t recognize that NFT is going to have a significant impact on the sale price you can get for that NFT.

Property rights are always going to rest on the rule of law, and in places where the rule of law is strong, property title law is well established and doesn’t need a distributed ledger to disrupt it. Disrupting it would generally be bad.