Why not though? I'm buying a house and this came to mind.
-Centralized city/county tokenizes all parcels of land, grants them to current owners
-I can prove I own it via a signed transaction, and anyone can trustlessly verify I own it
-When I sell it, I can trustlessly transfer it to the recipient for an agreed upon price via smart contract
Boom, no more closing fees. Eliminate the scammy title insurance industry. No broker fees... etc etc. Can someone ship this before I waste five figures paying parasites next month?
EDIT: Thoughts on flow.
-Seller owns token 123 in address A, which yourCity.gov shows is the following plat.
-Buyer approaches seller, provides address B. Seller provides address, buyer can verify that token matches plat via yourCity.gov
-Buyer and Seller agree on offer, Buyer provides address which reveals requisite funds.
-Seller generates a simple smart contract, _including the buyers address_. Code is essentially "upon receipt of 150 ETH from address B, this address will transfer token 123 to B".
The buyer can then pay or not, knowing that if he pays X he will receive Y (and thus, legal ownership enforced by the state). The seller can take down/invalidate the contract at any time before it executes. The seller could also put another contract up to another buyer, and if buyer #2 pays before buyer #1 they get the token (and any broadcasts from buyer 1 fail because the token is gone).
Seems pretty transparent to me.