Smart contracts are self-executing contracts with the terms of the agreement directly written into code. In the context of real estate tokenization, these contracts facilitate the buying, selling, and leasing of properties by automating transactions and ensuring that all parties adhere to the terms of the agreement. This technology eliminates the need for intermediaries, reduces transaction costs, and enhances transparency and security in real estate transactions. By using blockchain technology, smart contracts provide a tamper-proof record of all transactions, which can be audited and verified by all parties involved.