Buy shares in properties and earn passive income
How BitOfProperty works?
How do I make money?
The value of your shares changes according to the property prices
Each property has a defined holding period, however, you can exit anytime by selling your shares on the marketplace
Monthly Rent Distributions
Receive monthly rent according to your share ownership
Enjoy being a passive investor while we take care of all the everyday hassles.
How is my investment protected?
Each investment is backed with the acquired property where the Security Agent, operated by a third-party law firm, holds the collateral on behalf of all the investors.
The properties are held under individual Special Purpose Vehicles (SPV’s) and are separated from the assets and liabilities of BitOfProperty.
"I get monthly returns on my account and the support team has been very responsive when I've had questions."
" Easy to use platform. Hassle free investing. Friendly founders who care about their customers."
" Excellent service platform for real estate investors. Very good rental yields - and it's totally passive. Monthly rents arrive to your account like clockwork. Perfect."
Private Investor, Finland
What customers are saying about us!
What about the fees?
10% management fee
To cover the management costs of the property we take a cut from rental income
0% transaction fee
When you buy & sell shares of a property
Create an account
Verify your profile
Get started with three easy steps
Want to become a property investor?
1. General principles of processing of personal data
1.1. BitOfProperty as portal operator (“portal operator”) processes investor's personal data fairly, in a manner and to the extent provided for by the law.
1.2. The portal operator and its employees apply all diligence and security measures required by the law at processing investor's personal data to ensure only that it is only done for a purpose and to protect investor's personal data against inadvertent or unauthorised use, disclosure or destruction.
1.3. The portal operator enables access to the investor's personal data only to a restricted number of its employees who agree to keep investor's personal data confidential based on the relevant agreements concerning keeping of professional secret entered into with them for the period of working in the portal operator's organisation as well as after termination of the employment relationship. The portal operator excludes access of the unauthorised third persons to investor's personal data and database of the portal operator containing such data.
1.4. Acknowledging the applicable legislations covering the data protection in Europe and Asia (including the General Data Protection Regulation in Europe), the portal operator shall ensure appropriate and lawful gathering, processing and storing the user data. Deriving from the inconsistencies of the regulations in Europe and Asia, the portal operator at its locations in Estonia and Singapore is processing the respective data accordingly, providing there is no unlawful sharing of the confidential information between the two entities.
2. The purpose of processing of personal data
2.1. The portal operator is permitted by the law for processing of the personal data. The portal operator excludes the improper processing of investor's personal data.
2.2. The portal operator processes the personal data with the goal to ensure the welfare of the investors, performing and assuring the accuracy of the contracts entered into with and/or between the investors and adhere to the requirements prescribed to the portal operator by the law.
2.3. The main goals of the portal operator in connection with processing the personal data of investors are as follows:
2.3.1. To ensure accurate and proper identification of the investor;
2.3.2. To assess the capability of the investor to perform immediately his or her financial obligations of the contracts;
2.3.3. To ensure immediate execution of the contractual financial duties;
2.3.4. To enable the portal operator to deliver to the investor the portal operator's products and related promotional materials and/or notices, also the products and/or promotional materials and/or notices of the persons belonging to the same Group with the portal operator or third party cooperation partners of the portal operator if the investor has given his or her prior consent to the portal operator; and
2.3.5. To analyse the investor satisfaction and preferences towards the products and services of the portal operator to assure more effective product and service development and marketing activities.
2.4. The portal operator is entitled to process investor's personal data also for other purposes, if they are necessary for the performance of the obligations required by the law or if such goals are justified for the performance of the contracts entered into with and/or between the investors.
3. Personal data and their processing
3.1. The processor of the personal data within Europe will be the portal operator with the following contact information:
Registration Number: 12844051
Address: Vabriku 31-5, 10411, Tallinn, Estonia
3.3. The collection, recording, retention, arrangement, use, amending, delivering, disclosure and deleting of investor's personal data by the portal operator is deemed as processing of the personal data, but also other processing activities of personal data provided by the law.
3.4. The portal operator keeps the database about the investors' personal data and other information which primarily reflect the following personal data of the investors:
- First name and surname
- Personal identification code
- Date of birth
- Residence and/or location
- Communication means (phone, e-mail, etc)
- Communication language
- Bank account information
- Data of identity document
- Family-related information
- Education and work-related information
- Date of registration in the portal
- Financial data (including, but not limited to, the information about income, debts and earlier payment behaviour and information about related persons of the investor).
- Other information the investor has delivered to the portal operator, or which the portal operator has collected at its own initiative from public sources and sources permitted by law (media and Internet).
- Information about the contracts of the investor entered into via the portal and payment behaviour of the investor based on these contracts.
3.5. The portal operator may reflect also other investor related information in the investor database if there is a justified need for it regarding the performance of the contracts and if processing of such data does not contradict the applicable law.
3.6. The moment the investor has registered himself or herself as the investor of BitOfProperty is deemed as giving consent by the investor to the portal operator to process personal data (including transfer and disclosure of investor's personal data to the extent prescribed in clause 4 of these terms and conditions) described in these terms and conditions.
4. Transfer and disclosure of personal data
4.1. The portal operator is entitled to transfer investor's personal data primarily to:
4.1.1. Credit institutions for identification of the investor;
4.1.2. Persons whose economic or professional activity includes the provision of service of collection of debts and other related (financial) services for collection of contractual debt(s) of the investor;
4.1.3. Persons to whom the portal operator is obliged to transfer investor's personal data based on then applicable law; and
4.1.4. Persons providing the accounting services to the portal operator, also the persons providing legal assistance regarding the contracts entered into with or between the investors.
4.2. The portal operator is entitled to transfer investor's personal data to third persons in the situations not described in clause 4.1 of these terms and conditions only when there is justified interest for ensuring the performance of the contracts entered into with or between the investors. Transfer of such information to third persons shall not contradict the applicable law.
4.3. If the investor has separately given such consent to the portal operator, the portal operator is entitled to transfer investor's personal data (primarily the investor's name and e-mail address) to the persons to whom the portal operator has assigned a duty to market and promote portal operator's products to the investor.
4.4. Based on the contracts entered into/to be entered into, the portal operator agrees to oblige all third persons to who investor's personal data are transferred for the purposes described in this chapter (4) that they process investor's personal data only and exclusively for the purposes prescribed in this chapter (4).
5. Investor rights and obligations in connection with processing of the personal data
5.1. The investor agrees to transfer to the portal operator the required personal data described in these terms and conditions, which must be correct, valid and complete.
5.2. The investor agrees to inform the portal operator immediately about the changes in his or her personal data, including incorrectness or invalidity of personal data by delivering the portal operator the correct and valid personal data to replace the incorrect and/or invalid information.
5.3. The investor shall be fully responsible for his or her correct and valid personal data during the whole period of use of BitOfProperty.
5.4. The investor is entitled to demand information from the portal operator at any time about the personal data collected by the portal operator about him or her, also about the persons to whom the portal operator has delivered the investor's personal data. For that, the investor submits relevant application in a format which can be reproduced in writing to the portal operator. The portal operator performs the application within five (5) working days from receiving the application from the investor. The portal operator is entitled to refuse from transfer of the above specified information in cases and extent provided by the applicable law.
5.5. The investor is entitled to demand finishing of processing of the personal data from the portal operator, and the portal operator is obliged to finish processing of investor's personal data if the investor has duly performed all obligations of the contracts entered into with the portal operator and/or another investor and the investor's contracts entered into with the portal operator and/or other investor are terminated.
5.6. Despite the provisions of clause 5.5 of these terms and conditions, the investor is entitled to demand at any time finishing of processing of investor's personal data from the portal operator for the purposes described in clause 4.3 of these terms and conditions.
This Terms and Conditions document, in conjunction with the “Investment Agreement” hereby, sets out the terms and conditions, which are applicable to the Investments transferred or to be transferred to BitOfProperty OÜ’s (“BitOfProperty”) internet platform, as defined below, for the purpose of making the Investment set out in these Terms and Conditions.
By registering on BitOfProperty website www.BitOfProperty.com, you confirm your agreement to be bound by these Terms and Conditions. If you do not agree to these Terms and Conditions, you cannot enter into any Investment Agreement offered by BitOfProperty on its website www.BitOfProperty.com. These Terms and Conditions expressly supersede any prior agreements or arrangements with you. BitOfProperty may immediately terminate these Terms and Conditions with respect to you, or generally cease offering or deny access to the platform or any portion thereof, at any time for any reason set forth in these Terms and Conditions.
IMPORTANT: Please review the arbitration agreement set forth below carefully, as it will require you to resolve disputes with BitOfProperty on an individual basis through final and binding arbitration. By entering into this Investment Agreement, you expressly acknowledge that you have read and understand all of the Terms and Conditions read in conjunction of this Investment Agreement and have taken time to consider the consequences of this important decision.
The contents of the Investment Agreement and these Terms and Conditions are not intended to be construed as legal, financial or tax advice. Each eligible Investor should consult with a legal, financial and/or tax advisor from their behalf. In case of doubt about the contents of the following Investment Agreement, these Terms and Conditions or subsequent action subject to be taken upon by an Investor, the Investor should consult with a person specialized in advising on the provision of investments.
PARTIES TO THE INVESTMENT AGREEMENT
Investor (name as stated on the login account on BitOfProperty website www.BitOfProperty.com)
and BitOfProperty OÜ (registry code: 12844051)
PRINCIPAL INVESTMENT TERMS OF THE INVESTMENT PROPERTY
Principal investment terms: The Terms and Conditions are available below the Investment Agreement
Investment Currency: EUR
ARRANGEMENT FEE, SECURITY ARRANGEMENT FEE, ADMINISTRATION FEE AND SUCCESS FEE
Arrangement Fee: 2-4% of the Acquisition Amount.
Secuity Arrangement Fee: EUR 300. Fee paid to the Security Agent for the provision of Security Agent services by the Security Agent under the Security Agent Agreement, plus notary and state fees for setting up the Security to secure the interests of Investors.
Administration Fee: 10% of the administrative costs related to each real estate property acquired and managed by the SPV.
Success Fee: 15% of the Investment capital gain. Success Fee is paid to BitOfProperty OÜ at the exit.
In case of real estate property in Estonia: Estonian private limited company LMP Security Agent OÜ (registry code 14461928, address Soola tn 8, Tartu, 51013, Estonia) established and solely owned by Advokaadibüroo LMP OÜ (registry code: 12045166).
Management Board: The management board members overseeing the Investment Agreement are representatives of BitOfProperty OÜ.
Shareholders: 100% shares must be owned by BitOfProperty OÜ.
TRANSFER OF OBLIGATIONS FROM BITOFPROPERTY TO THE SPECIAL PURPOSE VEHICLE
Upon the commencement of the funding target shown in the relevant Investment on BitOfProperty portal, the Investment Agreement between the Investor and BitOfProperty shall be transferred over to a Special Purpose Vehicle (“SPV”), which assumes the investment obligations described in these Terms and Conditions. Subsequently, the Investment Agreement herein shall remain in force in its entirety between the Investor and the SPV, whereas SPV shall be the owner of the property the Investor has given consent to invest into under this Investment Agreement and Terms and Conditions. BitOfProperty continues to provide its services as the Portal Operator to the Investor and SPV through its website www.BitOfProperty.com.
Applicable Terms and Conditions: The Terms and Conditions below are applied to each Investment. In addition, the Terms and Conditions set out in the Investment Request apply to provision and disbursement of the Investment.
Inconsistencies: In the event of any inconsistency between the provisions of the Investment Agreement and these Terms and Conditions, the Investment Agreement shall prevail.
Binding consent treated as a signature given by the Investor by registering and identifying oneself on the BitOfProperty website www.BitOfProperty.com, subsequently by ‘ticking the box’ indicating the agreement to comply with the Terms and Conditions hereby.
Terms and Conditions
Interpretation and definitions
Unless the context and the law provide otherwise, the rules and principles described in this section (Interpretation and definitions) shall be used in the interpretation of the Investment Agreement and these Terms and Conditions, as well as other information published via BitOfProperty.
“Acquisition Amount” means the amount of funds paid by the SPV for the acquired real estate property.
“Administration fee” means the Administration Fee set out in section 14 of the Terms and Conditions.
“Agreement” means, the rights and obligations of BitOfProperty and respective Investor arising from these Terms and Conditions as well as the Investment Agreement.
“Arrangement Fee” means the Arrangement Fee set out in section 14 of the Terms and Conditions.
“BITS” means non-monetary tokens that are specific to the Investment Investor has entered into on BitOfProperty portal, representing a share the Investor has acquired.
“Business Day” means a day, which is not Saturday, Sunday or Estonian national or public holiday.
“BitOfProperty” means collectively BitOfProperty company group, including BitOfProperty OÜ in Estonia and BitOfProperty Pte Ltd in Singapore. The latter entity is also the licensed owner of the BitOfProperty portal www.BitOfProperty.com. BitOfProperty as the portal owner is also acting as a Portal Operator under these Terms and Conditions.
“BitOfProperty representative” means the member of the management board of BitOfProperty OÜ.
“Investment” means the principal amount of each Investment entered into by Investors via BitOfProperty portal, which BitOfProperty plans to agree or has agreed upon in accordance with the Investment Agreement.
“Investor” means a private person or a legal entity, acting as an Investor on BitOfProperty portal www.BitOfProperty.com per requirements stated in Section 3 of these Terms and Conditions. The Investor has given consent to the investment agreement and Terms and Conditions hereby, to take part in a crowdinvesting project.
“Investment Deadline” means the Investment Deadline as set out in the Investment Request.
“Investment Agreement” means an agreement included in and under these Terms and Conditions hereby. Through the procedures described in these Terms and Conditions, the Investor enters into and agrees to abide by an Investment Agreement. The Investment Agreement shall be read in conjunction with the rights and obligations of the Investors and the Portal Operator, as described in the Terms and Conditions hereby. The Investment Agreement shall also include all principal investment terms (including investment period and investment amount) relating to a respective Investment. All principal investment terms, binding to the Investment Agreement and to the Investor shall be included in the BitOfProperty website, available to all Investors who are parties to the relevant Investment Agreement.
“Investment Application” means an online application, whereby an Investor indicates his or her consent in providing an Investment via BitOfProperty, which is submitted via the Website.
“Investment Request” means an online offer of the Investor to make an Investment, which is submitted by the Investor via the Website.
“Portal Operator” means the same as “BitOfProperty”.
“Proceeds” means (a) any interest, dividends or other similar monetary distributions deriving from the Investments actually received by BitOfProperty OÜ or (b) any monetary proceeds actually received as a result of the disposal of the Investment or liquidation or bankruptcy of BitOfProperty or (c) any money received as repayments of an investment provided to the BitOfProperty or (d) any money received from the sale of non-monetary distributions or proceeds received by BitOfProperty OÜ (in each case less the amount of costs related to receiving such Proceeds, including the cost of conversion sums received in other currencies to euros).
“Security” means the Security granted in the form of a mortgage by the Security Providers to the Security Agent for the security and benefit of the Investors under the Security Agreement and these Terms and Conditions;
“Security Agent Agreement” means the agreement between the Portal Operator and the Security Agent that sets down the terms for the provision of Security Agent services by the Security Agent.
“Security Agent” means a company as defined in section 5 of the Investment Agreement. Security Agent is the designated security agent according to the Investment Agreement between the Investor and BitOfProperty OÜ, Terms and Conditions and the Security Agent Agreement. The Security Agent is not affiliated with BitOfProperty OÜ. There is no client relationship between the Security Agent and BitofProperty OÜ, other than the Security Agent rights and obligations described in these Terms and Conditions and in the Security Agent Agreement.
“Security Providers” mean BitOfProperty OÜ, alternatively referred to as the Portal Operator (as defined above), jointly with BitOfProperty OÜ’s fully-owned private limited companies, acting as a Special Purpose Vehicles.
“Special Purpose Vehicle” or “SPV” is a private limited company established and managed by BitOfProperty and its representatives, under the laws of Estonia upon the fulfilment of the funding target subject to Investment, as shown by BitOfProperty on Website. SPV shall be the successor of the Investment Agreement initially concluded between the Investor and BitOfProperty OÜ during the entry into Investment Agreements’ phase.
“Success Fee” means the Success Fee set out in section 14 of these Terms and Conditions.
Units and periods:
length of the year is 365 days;
month is a calendar month;
quarter is a period the length of which is 3 (three) months;
semi-annual refers to the period the length of which is 6 (six) months;
working day is a day, which is not a Saturday, a Sunday or a public holiday and on which credit institutions are open for performing bank transfers in Tallinn, Estonia;
determination of time periods specified by time is based on the BitOfProperty system clock and EET time zone;
the start of an investment period is the time of completion of the investment amount by the investor(s) by the procedure described in these Terms and Conditions.
“Wallet” means software made available for the Investor by BitOfProperty. Access to Wallet is secured through the Investor’s personal login to the Website.
“Website” means www.BitOfProperty.com.
These BitOfProperty Terms and Conditions regulate the terms and conditions of the use of applications and functional units located on a public computer network at address www.bitofproperty.com and its sub-pages or at web pages within the same administrative domain ('BitOfProperty' or 'portal'), including rights and obligations related to the use of BitOfProperty by a person having expressed the wish to become the Investor. Inter alia, the relevant rights and obligations comprise the rules that apply to the interrelations of the Investors as between themselves as well as their relationship with the Portal Operator and with the Security Agent.
The aim of BitOfProperty is to enable the Investors to use its technical solutions by the means of joint venture investments for the purposes of co-funding the acquisition of real estate on the principle of crowdinvesting through a blockchain platform. In order to contribute in the joint venture, the Investor wishing to invest must enter into an Investment Agreement, in accordance with the procedure established in these Terms and Conditions. The relevant Investment Agreement constitutes a separate agreement between the Portal Operator and the Investor for the purposes of investment capital available for contribution, under the rights and obligations of which are performed, inter alia, with the specifications and restrictions based on these Terms and Conditions. These Terms and Conditions are considered as an investment agreement for the purposes of real estate crowdinvesting.
BitOfProperty cooperates with Investors who have registered as Investors of the portal. The Investor fee for participation in the crowdinvesting offered by BitOfProperty is included in fees indicated in section 14.
If not stated otherwise in these Terms and Conditions, any person who has expressed the relevant wish by submission of registration application via BitOfProperty web page, and who meets the conditions laid out in this section, can become an Investor.
A legal person can register as an Investor only through its representative who is a natural person. Such representative of the legal person must be a registered Investor of BitOfProperty as natural person before submission of registration application on behalf of the legal person.
Both natural and legal persons can act as Investors.
An Investor who is a natural person must be at least 18 years old whose active legal capacity is not restricted. A legal person can be an Investor only in case that legal person is duly established and existing according to the law of its country of residence.
Each Investor must disclose all necessary information, documents and other evidence to the Portal Operator necessary for the verification of the Investor’s identity by the procedure provided by law.
Identification of the Investor
When registering as Investor, the applicant must enter his or her e-mail address, receive a unique Investor ID and password and submit other information requested by BitOfProperty under the Portal Operator's discretion. Inter alia, BitOfProperty can recommend the combination of letters and/or numbers forming an Investor ID and password and demand regular changing of the selected password due to security or other considerations.
The Investor ID and password provided by BitOfProperty are personal to that Investor and are used to identify the Investor each time the Investor logs into the portal and makes transactions via the portal. Despite the above specified, the Portal Operator may enable the Investor to use Investor ID and/or password the Investor uses for access to certain social media sites like Twitter, LinkedIn or Facebook for entering the portal, also ID-card and mobile-ID solution.
The Investor undertakes to keep his or her Investor ID and password confidential. It is presumed that the person using the Investor ID and the password has an authorization, arising from either law or contract, to make transactions in the name of the Investor. The Portal Operator can restrict the Investor's rights or refuse to follow the Investor's instructions, inter alia, in case the portal operator considers that there is a risk that third person(s) possess the Investor's ID and password.
Virtual wallet account of the Investor
In order for the Investor to access the BitOfProperty platform for making an Investment, the Investor must log in with the personal login details, as described in section 4. The Investor must also fill out a detailed identification information and conduct a bank transfer to BitOfProperty’s virtual wallet. The amount of the transfer must be a multiple of 5 (in an amount equivalent to it, in a currency recognized by the World Bank). Regardless of the amount, the transfer will be reflected on the e-wallet as the funds of the Investor. The initial transfer by the Investor is intended for BitOfProperty as the Portal Operator to conduct the required Know-Your-Customer (“KYC”) procedure, in accordance with the applicable laws, to prevent any unlawful provision of information by the Investor to BitOfProperty. Should BitOfProperty identify any Investor-related discrepancies in the KYC procedure, the initial amount will be transferred back to the bank account it was initially transferred from.
Each Investor has a personal sub-page or sub-pages in the virtual wallet online environment ('account') opened by BitOfProperty with the aim of recordkeeping his or her transaction balance and certain other financial actions and claims. Inter alia, the account reflects the balance of funds that the Investor has transferred to the Portal Operator in any monetary currency recognized by the World Bank with the purpose of investments made or to be made by the Investor (including for performance of Investor's financial obligations).
If not otherwise stated in these Terms and Conditions, the Investor can withdraw the positive balance reflected in the Investor’s account at any time and in any amount specified by him or her. For the withdrawal the Investor must instruct the Portal Operator accordingly through the relevant application provided in the virtual account. The above specified instructions are deemed to conform to the requirements prescribed in section 2 of these Terms and Conditions. The withdrawal of a positive balance is a transfer to the bank account from which the Investor has previously transferred funds to the Portal Operator by the procedure prescribed in section 6. The amount to be withdrawn in BITS will be converted into the monetary currency the account Investor has opted for in the relevant application in the virtual account.
If not stated otherwise in these Terms and Conditions, the Investor can transfer funds to the Portal Operator with the purpose of transactions made or to be made by the Investor in an amount chosen by the Investor. The transfer of funds to the Portal Operator shall be done by the procedure prescribed in section 6. The transfer of funds to the Portal Operator must include an Investor ID number. The Portal Operator can, at its own discretion, impose restrictions or requirements to the minimum or maximum amounts of funds available on the account. In case the Investor has not yet decided to participate in an Investment, nevertheless a transfer of money to Investor’s account must include an Investor ID.
In case the Investor does not provide an Investor ID in the transfer of funds or an incorrect Investor ID is provided, the Portal Operator will transfer back the funds to the Investor’s bank account. Any expense in such scenario involving currency exchange costs or administrative costs are vested on the Investor who made the transfer of funds with incorrect Investor ID.
The Portal Operator keeps the funds transferred to the virtual wallet by an Investor as a mandatary in the Portal Operator's own name on the digital wallet platform that the Portal Operator has set up for that purpose in a credit institution registered in the commercial register in Estonia. The Portal Operator keeps the relevant funds separately from its own funds. For the avoidance of doubt, funds transferred to the virtual wallet by an Investor remain under the ownership of the Investor and will not become a property of the Portal Operator. Thus the funds shall not be used by the Portal Operator in any other way than as set out in these Terms and Conditions. In case of bankruptcy proceedings, the funds transferred to the virtual wallet by Investor shall be treated as assets belonging to Investor, not Portal Operator.
If an Investor has made a transaction via BitOfProperty, the positive balance of the Investor's funds reflected on the account is reserved until the moment of completion of required amount through crowdinvestment for the acquisition of real estate the Investor has opted to invest into."
The Portal Operator may not use the funds transferred to its digital wallet until the moment of reaching the target amount for the joint investment.
In order to make a transaction via BitOfProperty, post-KYC procedure as described in section 5(a), an Investor must transfer the necessary funds to the Portal Operator’s digital wallet. The funds transferred by the Investor to Portal Operator’s digital wallet must be done by way of a bank transfer from the current bank account which the Investor had previously disclosed to the Portal Operator. The bank account of the Investor must be held in the name of that Investor.
Crowdinvesting of projects
Crowdinvesting via BitOfProperty may be applied exclusively for the purposes of funding real estate acquisition ('project').
Crowdinvesting of a project via BitOfProperty can occur only by way of paid investment(s) entered into by Investors for collectively funding of the relevant project of acquiring a real estate each Investor has individually opted for at his or her own discretion.
Only a person who is registered as an Investor and whose identity the Portal Operator has verified in a manner prescribed in these Terms and Conditions can participate in the crowdinvestment project for the purposes of acquiring real estate. The Portal Operator may, at its own discretion, not allow some Investor to act in the capacity of an Investor. The Investor is liable for all direct and indirect damage and expenses which have occurred or may occur in the future to BitOfProperty or other persons due to the breach of the obligation of the Investors to comply with Investor requirements under these Terms and Conditions.
In order to invest into a real estate project offered via BitOfProperty, the Investors must enter into the respective Investment Agreement, by using the relevant BitOfProperty application(s).
BitOfProperty can make precepts, that the person wishing to participate in the investment project must submit evidence of his or her creditworthiness and any other information and evidence requested by the Portal Operator from time to time.
Upon receipt of the application form described in Section 6(d) hereabove, the Portal Operator reviews the information contained in the application form at its own discretion. Among other things, the Portal Operator will assess the creditworthiness of the relevant Investor on the basis of the information supplied by the Investor wishing to participate in the investment project. The assessment can be based also on any other information which the Portal Operator considers appropriate through its KYC and Anti Money Laundering (“AML”) procedures. In its AML procedure the Portal Operator may make enquiries to third parties, any relevant registries and use other sources for collecting any information for the purposes of assessing the application. Inter alia, in the course of reviewing the application, the Portal Operator may commission, at the cost of the Investor, a valuation report of the real property/ies the subject of the project from an independent party who is engaged in the business of real property valuations.
If the Portal Operator, having taken the actions described in the section hereby, finds that the submitted application is acceptable for BitOfProperty, the applicant may complete and confirm the Investment Request referred to in section 7 of these Terms and Conditions, on the terms agreed with the Portal Operator. The Portal Operator can allocate a risk category to the relevant request for investment at its own discretion based on the principles described in the relevant sub-page of BitOfProperty.
Entry into Investment Agreements
Entering into an Investment Agreement takes place by way of an Investor making an order through an Investment Request to the BitOfProperty to enter into an Investment Agreement and BitOfProperty accepting such Investment Request, as follows:
the Investor completes, on the terms agreed with the Portal Operator, the Investment Request using the relevant BitOfProperty application and confirms it in accordance with the procedure described in section 8 (Confirmation of transactions in BitOfProperty) of these Terms and Conditions;
the Investment Request shall set out the following:
the amount of money the person making the Investment Request wishes to invest into the relevant project;
the time period during which the Investment Request is effective and during which acceptances can be given in respect of it. As an exception, such investment initiation period may be ended prematurely where the Investor status of the Investor is terminated pursuant to the procedure described in section 17 or where any event described in section 18 occurs.
the Investment Request is deemed to constitute an order addressed to BotOfProperty, to enter into an Investment Agreement within the meaning of the Law of Obligations Act where the person making such Investment Request expresses its intention to be legally bound by the Investment Agreement(s).
An Investment Request cannot be withdrawn by the Investor, but the Investment Request lapses if by the end of the investment initiation period an Investor or Investors have not given an acceptance or acceptances through at least the minimum amount of the funding target.
By giving an acceptance, BotOfProperty expresses its intention to be legally bound by the Investment Agreement . The acceptance cannot be withdrawn.
The Portal Operator shall have the right to reject an Investment Request if the maximum amount of the funding target has been met.
The investment amount specified in any acceptance:
May not be less than EUR 500;
Shall be a multiple of EUR 5,
May not exceed the maximum amount of the funding target.
Following the acceptance of the Investment Request, BitOfProperty prepares a transcript of the Investment Agreement in pdf-format (which may comprise one or several documents in pdf-format). The transcript will be sent by e-mail or otherwise made available to the Investor within the portal. The transcript includes, among other things, the following information:
Name of the project for the funding of which the Investment Agreement was entered into;
Address of the Investment;
Estimated exit price;
Estimated exit capital gain;
Holding period; and
Principal investment details (incl. Yield, Return on Investment and relevant BITS).
Transfer of obligations from BitOfProperty to its Special Purpose Vehicle (“SPV”)
Upon the fulfilment of the funding target set by BitOfProperty on its portal, the Investment Agreement will be transferred by BitOfProperty to the SPV in its entirety. The contract parties subject to the abovementioned Investment Agreement and these Terms and Conditions shall continue to be the Investor and the SPV. Under the Investment Agreement, SPV shall be the successor of the Investment Agreement and, subsequently, the owner to real estate property the Investor has given consent to invest.
Post-transfer of the Investment Agreement obligations to the SPV, BitOfProperty will remain as the Portal Operator. BitOfProperty will continue to provide intermediary services to SPV by the means of BitOfProperty portal usage for the Investor, to ensure appropriate compliance under this Investment Agreement and these Terms and Conditions.
In case the funding target set by BitOfProperty has not yet been fulfilled, the Investment Agreement and subsequent obligations the Investor has agreed to under these Terms and Conditions shall remain with BitOfProperty and is not yet transferred to the SPV.
Confirmation of transactions on BitOfProperty
In cases prescribed by BitOfProperty an Investor must confirm a transaction or other action, including an Investment Request, each time by entering the password assigned to the Investor or in any other manner prescribed by BitOfProperty. By giving the respective confirmation, the Investor expresses its irrevocable intention to be bound by the confirmed transaction or action.
In cases specified by BitOfProperty, an Investor must confirm a transaction, agreement or action connected with use of BitOfProperty in a written or notarial form.
Procedure of payment and calculation
The procedure of payments and calculations provided for in this section 9 applies to all transactions and actions made via BitOfProperty. These procedures include repayment of investment, payment of interest and default interest and other payments to be made under or pursuant to the investment documents.
If pursuant to an Investment Agreement or on any other ground an Investor must perform any financial obligation, there must be, no later than on the day when that financial obligation becomes due (or in cases specified in the Terms and Conditions, on the day when that financial obligation is committed to), free funds on the Investor's account. Such free funds are for performing the relevant obligation in an amount equal to the amount necessary for performance of that financial obligation in full. If there are no free funds on the Investor's account on the day when the relevant financial obligation becomes due, it is deemed that the Investor has breached the relevant financial obligation to the extent of the missing amount.
When a breach of obligation per Section 9(b) by the Investor occurs, the Portal Operator is entitled to take actions according to Section 10(b) of these Terms and Conditions.
Payment defaults and other breaches
If the Investor does not perform any financial or non-financial obligations arising from an Investment Agreement, these Terms and Conditions or other investment documents, the Portal Operator can conduct any actions or take steps on behalf of the Investor(s) and/or itself. Any such actions or steps are done at the Portal Operator’s own discretion considered to be necessary or desirable to achieve the performance of the relevant financial or non-financial obligation. Such right applies also when there is a ground for extraordinary cancellation of the Investment Agreement or the use of other legal remedy.
Inter alia, the Portal Operator may at its own discretion for the purposes described in section 10(a):
send reminders, balance notices and warnings to the Investor (including bankruptcy warnings) by the means provided for in the Terms and Conditions or by any other means;
commence court or arbitral tribunal proceeding, enforcement proceeding, and bankruptcy or other insolvency proceeding, by the procedure provided for by law and in accordance with these Terms and Conditions, including participate in the relevant proceeding as a representative of the Investor and on behalf of the Investor;
restrict the Investor's rights for using BitOfProperty;
extraordinarily cancel the Investment Agreement on grounds provided for in the Investment Agreement or on grounds provided for by law;
if more than one Investment Agreement has been entered into for funding of the relevant project, the Portal Operator carries out the above specified actions and steps concurrently in relation to all the relevant Investment Agreements.
By registering as an Investor, each Investor gives instructions, consent and authorisation to the Portal Operator, with the right of sub-delegation, to carry out, on behalf of the Investor and as its representative, the actions and steps described in sections 10(a) and 10(b) of these Terms and Conditions at their own discretion. Subsequently, the Portal Operator is entitled to use third persons whose economic or professional activity includes collection of debts and the provision of related services (including lawyers, persons providing collection services, bailiffs or other persons). The above described instructions and authorisation also includes the right of the Portal Operator and the Security Agent to perform any action and/or transaction on behalf of and as a representative of the Investor which in the Portal Operator's and/ or Security Agent’s opinion is necessary for the assignment described in section 10(d) to be valid.
If the Portal Operator or the Security Agent delivers the relevant notice to an Investor by the procedure provided for in section 11 Delivery of notices of these Terms and Conditions, all claims arising from the investment documents relating to the funding of the relevant project that have fallen due against the Investor are deemed to be automatically assigned to the Portal Operator or Security Agent as specified in the notice hereby. The respective claims are deemed to be assigned from the moment the addressee has received the assignment notice according to section 11 of these Terms and Conditions.
The relevant notice referred to in section 11 of these Terms and Conditions may be delivered only when the Investment Agreement(s) entered into for funding of the relevant project is/are extraordinarily cancelled by the procedure prescribed in the other provisions of this section.
The Portal Operator, Security Agent and the SPV may cease to carry out the actions and/or steps described in this section 10(e), or not apply them, if in the Portal Operator's or the Security Agent’s in their own assessment and discretion. The Portal Operator, Security Agent or the SPV informs the Investor about the cessation or non-application of the relevant actions and/or steps by the procedure prescribed in section 11 (Delivery of notices) of the Terms and Conditions. Following delivery of the aforementioned notice, on request of the investor, the Portal Operator, the Security Agent or the SPV may (but is not required to) re-assign to the Investor the due claim(s) previously assigned to and not complied by that Investor.
Delivery of notices
Any communication between the Investor and BitOfProperty will be carried out via email address provided by the Investor, as described in section 4(a).
Amendments to the Investment Agreement and other investment documents
The Portal Operator may unilaterally amend these Terms and Conditions and the relevant amendments take effect from the moment they are published in the portal, with the exception described in section 12(b) of these Terms and Conditions. The Portal Operator may at its own discretion require that the Terms and Conditions are confirmed by the Investor.
Any amendments intended to be made in these Terms and Conditions that concern directly the rights and obligations of the Security Agent, pursuant to section 19, must be agreed by the Portal Operator and the Security Agent together.
Transfer of rights and obligations of the Investor
An Investor may not assign or otherwise transfer the rights and obligations arising from these Terms and Conditions or any investment documents to a third person without the consent of the Portal Operator and/ or the Security Agent.
Governing law and procedure for solving disputes.
These Terms and Conditions and other circumstances, actions and transactions relating to the use of BitOfProperty are governed by Estonian law.
Disputes between the Investors or between the Portal Operator and/ or the Security Agent and an Investor relating to the use of BitOfProperty, including the ones based on any investment document, will be endeavoured to be resolved by way of negotiations. In case of failure of negotiations, such disputes are resolved in a Harju County Court as the Court of First Instance in the Republic of Estonia, if not otherwise stated in these Terms and Conditions or in any investment document.
the laws of the Republic of Estonia shall be applied to the resolving of disputes.
Fees and costs
Unless stated otherwise, the Investor undertakes to pay and commit to the following fees and costs to the Portal Operator:
Arrangement Fee 2-4% from the Acquisition Amount;
Security Arrangement Fee of EUR 300 that is paid for the provision of services to the Security Agent under the Security Agent Agreement, plus notary and state fees for setting up the Security;
Administration Fee, that is calculated as 10% of the rental income per respective real estate property;
Success Fee ('success fee'), that is calculated as 15% of the capital gain obtained through real estate property sale price after the maturity deadline per principal Investment Agreement;
Other fees referred and agreed to in the respective real estate crowdinvesting offers on BitOfProperty portal.
If not stated otherwise in section 10(a) of these Terms and Conditions, the Success Fee, also the costs related to the conclusion of Investment, shall be paid to the Portal Operator immediately. This must be done before the transfer of the investment amount to the Investor by the Portal Operator. The Portal Operator may withhold the Success Fee from the investment amount by transferring the investment amount to the Investor only in the amount left after deducting the Success Fee. Other fees (except Administration Fee) shall be paid to the Portal Operator as stated in the Investment Agreement and other relevant investment documents relating to the Investment.
If not stated otherwise in these Terms and Conditions or other relevant investment documents relating to the Investment, the Administration Fee accrues and is payable for each day for so long and until the Investor has performed all financial obligations arising from or based on the Investment.
If not stated otherwise in these Terms and Conditions, the Administration Fee must be withheld by BitOfProperty as follows:
if according to the relevant investment documents relating to an Investment shared by the Portal Operator the Investment is repayable in instalments pursuant to the repayment schedule, the Administration Fee calculated for the whole investment period is divided into periodical instalments. On the due date of the periodical instalment of the Administration Fee, the Investor must make a payment of an equal Administration Fee instalment that will be withheld by the Portal Operator;
if according to the Investment Agreement or any other investment documents shared by the Portal Operator relating to an Investment, Investment is repayable in full at the end of the investment period. The relevant interest is payable periodically by monthly, quarterly, semi-annual or annual payments pursuant to the interest payment schedule.
The amount of each instalment of the Administration Fee referred to in section 14(d)(i) of these Terms and Conditions is shown in the relevant column of the repayment schedule or interest payment schedule referred to in section 7(a)(ii)(3) of these Terms and Conditions relating to the relevant Investment Agreement.
Fees provided for in section 14 of these Terms and Conditions must be paid only in case during the investment initiation period the principal amount of the Investment Agreements entered into for funding of the relevant project amount to at least the minimum amount of the funding target shown in the relevant Investment Request. The applicable amounts of the services provided by BitOfProperty can be found from the valid pricelist on BitOfProperty webpage.
The Portal Operator can set off the fees, costs and/or losses to be paid or compensated to the Portal Operator and/or the Security Agent against the funds shown on the account of the relevant Investor.
Fees provided for in section 14(a) of these Terms and Conditions do not include value added tax (VAT) and if according to the law the relevant fee is taxed with value added tax (VAT) or other similar tax, the relevant tax is added to the Success Fee and/or the Administration Fee.
The Investor must pay the fees in euros in full. Without the consent of the Portal Operator the Investor may not perform the obligation to pay the relevant fee by way of set off or make any withholdings or other deductions from the amount to be paid. The consent by the Portal Operator must be done in a format which can be reproduced in writing, unless stated otherwise in these Terms and Conditions.
In an unlikely event where the Security Agent will need to exercise its rights and obligations under the Security Agent Agreement in the interest of the Investors, the fee of the Security Agent and any possible state fees shall be deducted from the amounts payable to the Investors. The remainder is to be paid by the Security Agent to the relevant Investors, proportionally to the investment amount each Investor has transferred during the entry into Investment Request period, referring to section 7 of these Terms and Conditions. The Security Agent fee shall be calculated at 2% from the Success Fee (including the costs borne from the actions of the bailiff) but it shall not be less than EUR 5 000 and it shall not exceed EUR 10 000.
Legal status, rights and limitations of responsibility of the Portal Operator
The primary content of the service provided by the Portal Operator is to enable the Investors, by the means of BitOfProperty, to use technical solutions which help them to crowdinvest for funding real-estate related business. Among other things, the content of the service provided by the Portal Operator and the Security Agent do not include the following:
The intermediation of entering into Investment Agreements or the provision of other brokerage services;
Guaranteeing or otherwise underwriting the availability or accessibility of funds to the Investors, or ensuring the performance of the financial obligations of the Investor(s);
Accepting of deposits or other refundable instruments or giving of investments or other financings on its own account or behalf;
providing of investment or legal advice;
Undertaking real estate transactions or providing advice in respect of the same; or
Provision of payment services.
In addition to those referred to in section 15(a), the Portal Operator performs an administrative function in the execution and performance by the Investors of any investment documents with the view to facilitating the performance of an investment and communication between Investors. When collecting any amounts owned by an investor, the collection will be conducted at Portal Operator’s own discretion and experience, in the best interests of the Investor.
The Portal Operator takes the duty to initiate the sale of the Investment property 6 months prior the final end date of the Investment Agreement. The Portal Operator shall apply the forecasted sale price, as per Investment Agreement. In a situation, where the sale of the Investment property is not successful in the 6 months prior the end of the Investment Agreement, the Portal Operator takes the responsibility to sell the Investment property in the following 6 months as from the end date of the investment agreement.
The Portal Operator reserves the right to re-evaluate the market conditions for each Investment under each applicable Investment Agreement and, subsequently, to sell the Investment property earlier or later than the maturing time stated in the Investment Agreement, provided that the forecast estimate has been reached earlier or later than forecasted.
The Portal Operator is not a party to the Investment Agreement(s)
The Portal Operator is not liable for:
Performance of Investor's (including Investor's) obligations;
Trueness or accuracy of information and/or confirmation(s) published or provided by an Investor on the portal or any investment document. Among other things, the above specified limitation of liability applies also to any details and other information published in the BitOfProperty portal in respect of projects and Investors;
Any disruptions or impediments that may occur in the operation of the credit institution referred to in section 5(c) of these Terms and Conditions, including for any losses which may directly or indirectly be incurred as a result of the insolvency or moratorium of such credit institution or any other similar event;
Losses incurred as a result of any act or failure to act by the third persons referred to in section 10 (Payment defaults and other breaches) of these Terms and Conditions whose economic or professional activity includes collection of debts and the provision of related services;
Legal bindingness, scope, content, suitability and enforceability of Investment Agreements and other legal documents used on BitOfProperty portal, including those used for the carrying out of transactions through BitOfProperty;
Bugs or disruptions that occur in BitOfProperty or amendments made in BitOfProperty or the consequences of termination of the operation of BitOfProperty;
Trueness and accuracy of any forecasts, including financial indicators and forecasts of any project, published in BitOfProperty;
Circumstances that derive from or depend on the identity of an Investor;
Losses incurred as a result of the materialisation of the risk referred to in section 16(b) of these Terms and Conditions;
Non-patrimonial damages, loss of profit or other indirect losses, or other damages caused as a result of its conduct other than intentional misconduct.
Permission to publish an Investment Request and assigning a risk category to it in the BitOfProperty portal does not constitute an investment recommendation or other endorsement by the Portal Operator in respect of the relevant Investment Request. Publishing an Investment Request does not indicate the Portal Operator's confirmation or any other indication that the person making the Investment Request is creditworthy, the relevant project is viable, or that the Investor will get the relevant investment back or make any profit from it.
The Portal Operator may make changes in BitOfProperty, including expand, change or remove its functions, at its own discretion at any time without asking permission of the Investors for it or giving a prior notice to the Investors.
General obligations of the users
In concluding transactions in BitOfProperty each Investor shall itself assess the suitability and risk of the relevant transaction and, if necessary, use the help of advisers who are specialists in the relevant field.
By registering as an Investor, the Investor confirms, among other things, that when using BitOfProperty, including when concluding transactions via BitOfProperty, it is not acting as a consumer. The Investor understands the risks involved in using BitOfProperty (including the possibility that when the risks related to use of BitOfProperty and investing materialise, the expected profit from it can be negative) and acts only at its own risk.
An Investor must itself declare and pay the taxes payable in connection with transactions and actions made via BitOfProperty to the extent and by the procedure provided for by law and the Portal Operator nor the Security Agent does not make deductions on account of taxes payable if the same is not required by law. The Investor itself shall bear all costs, fees, duties and taxes accompanying the use of BitOfProperty, including the currency exchange rate opted for the payment of the proceeds by a Investor.
The Investor agrees and confirms that:
Performance of Investment Agreements and other investment documents, including communication between Investors relating to the entry into or other matters relating to Investment Agreements, may only take place by the procedure prescribed in these Terms and Conditions and the Investment Agreements and via and with the assistance of BitOfProperty. Only exception is extended in case the Portal Operator has given prior consent in a format which can be reproduced in writing;
Collection of any financial obligation arising from an Investment Agreement, these Terms and Conditions or other investment documents may take place only by the procedure prescribed in section 10 (Payment defaults and other breaches) of these Terms and Conditions through and with the help of the portal operator and/ or the Security Agent. The Investor has no right to take such actions or steps independently except in case the Portal Operator and/ or the Security Agent has given prior consent in a format which can be reproduced in writing; and
Any matters and other information it becomes aware of through, or in the course of, the use or access to BitOfProperty, may be used by the Investor for the purposes of using BitOfProperty services only and not for any other purposes.
The Investor must act in good faith when using BitOfProperty and take the rights of other Investors into account and not use BitOfProperty for the purpose of causing harm to other Investors and/or the Portal Operator and/ or the Security Agent or for other purposes that are against good morals or good faith.
The Investor agrees and confirms that any information provided or to be provided to the Portal Operator, another Investor or otherwise via BitOfProperty is true and accurate. In addition, in delivering notices and in other communication via BitOfProperty an Investor must treat the addressees of the relevant notices and communication respectfully and politely and not use the BitOfProperty applications that enable the delivery of notices and other types of communication, for any communication other than that which is consistent with the purpose of BitOfProperty.
When using BitOfProperty, an Investor undertakes not to use technical equipment, applications or solutions (including computer programmes) the aim or function of which is an automated use, reading, collection, recording or other processing of the portal’s content or data recorded in it.
Termination of Investor status
At the request of the Investor, the Portal Operator terminates the Investor status of that Investor if he or she is not a party to any Investment Agreement. Upon termination of the Investor status the relevant Investor has no monetary claims against any other Investor in connection with the use of BitOfProperty and the relevant Investor has performed all financial obligations incurred towards the Portal Operator, Security Agent and any other Investor in connection with the use of BitOfProperty.
The Portal Operator may, at its own discretion, terminate the Investor's Investor status or restrict the Investor rights at any time without justification by informing the relevant Investor of the same by the procedure described in section 11 (Delivery of notices) of the Terms and Conditions.
When the Investor status is terminated by the procedure prescribed in section 17(a) or 17(b), the Portal Operator transfers the positive balance of the funds reflected on the account of the relevant Investor to that Investor's current account which that Investor had previously given to the Portal Operator, from which the Investor has previously transferred funds to the Portal Operator by the procedure prescribed in section 5(8).
Termination of Portal Operator's activities
Declaration of bankruptcy of the Portal Operator or termination of the Portal Operator's operations for other reason does not affect the validity of the investment documents already entered into (unless otherwise stated in the Investment Agreement).
Declaration of bankruptcy of the Portal Operator or termination of the Portal Operator's operations initiates immediately action by the Security Agent pursuant to section 19 of these Terms and Conditions.
When the Portal Operator's bankruptcy is declared or when the Portal Operator terminates its operations for some other reason:
The investment period of each active Investment request lapses prematurely;
The Portal Operator transfers the positive balance of funds reflected on the account of an Investor to the Investor's current account which that Investor had previously given to the Portal Operator, from which the Investor has previously transferred funds to the Portal Operator by the procedure prescribed in section 5(8);
The Portal Operator gives, by the procedure prescribed in section 14 (Delivery of notices) or by other procedure, instructions to the Investors regarding matters relating to further performance of the Investment to the extent due performance of the relevant Investment is not possible without the help of the Portal Operator and/ or the Security Agent.
The instructions referred to in section 18(c)(iii) of the Terms and Conditions may, inter alia, comprise instructions given to the parties of the Investment Agreement to:
Perform payments to be made based on Investment Agreement and other investment documents directly to the party entitled to that payment;
Deliver notices related to the investment documents to the other party by methods other than those described in section 11 (Delivery of notices) of the Terms and Conditions;
Continue performance of the Investment in a manner, by the procedure and in the extent where a third party appointed by the Portal Operator performs the role and functions that the Portal Operator and/ or the Security Agent had previously performed; or
Other relevant instructions the purpose of which is to facilitate performance of an Investment in circumstances where the Portal Operator has terminated its operations or been declared bankrupt.
The Portal Operator may, for the purposes described in section 20, provide to the parties of an Investment and/or to the third person referred to in section 18(c)(iii) of the Terms and Conditions, all relevant information about the other party or parties to the Investment including their contact and current account details and other information related to the Investment.
The Security/Securities referred to in the principal investment terms must be established in favour of the Security Agent as defined on section 1(s) and 10(b)(vii) of these Terms and Conditions.
Upon acquisition of real estate property, the Portal Operator will provide the Security Agent details of the relevant Investors of each Investment. The information will include, but is not limited to, the Investor’s name and bank account details, the Investment amount and the Investment project number and name. The Security Providers shall update the information provided to the Security Agent in case any details related to the Investors should change, as provided under the rights and obligations of the Investors under the Terms and Conditions. The disclosure of Investors’ information shall take place upon the commencement of the Investment and subsequent set-up of the Security under these Terms and Conditions.
The Security Agent is obligated to fulfil its obligations to sell the property bought for the funds invested by the Investors via BitOfProperty and its SPV, in case BitOfProperty or SPV is declared bankrupt. In case of a bankruptcy of BitOfProperty or SPV, the Security Agent is required to take any necessary steps in selling the property, on behalf and for the benefit of the Investors. The Terms and Conditions applicable for the sale must be conducted according to market prices and in good faith by the Security Agent. Upon selling the property, the Security Agent will transfer the proceeds from the sale to the Investors concerned in that Investment, by using the Investor information provided by the Portal Operator as described in section 19(b). The Security Agent has the right to deduct is fees from the proceeds, as described in section 14 (fees and costs), prior the distribution of funds to the Investors.
The Security Agent keeps the Security or Securities given in connection with a secured Investment in its own name in the interests of Investor(s) and performs actions and transactions related to the relevant Securities. The Security Agent shall act on the basis of instructions given by the Portal Operator on behalf of the Investor(s), these Terms and Conditions and investment documents related to the relevant Investment.
If the Security Agent has received funds for the Investors as a result of actions carried out with the aim of collection or enforcement of any claims (including realisation of Security), the Security Agent transfers the relevant funds to the Investors (having previously deducted and paid all costs and fees incurred or calculated by it in relation to the relevant actions as agreed in the Security Agent Agreement). The Security Agent records the relevant proceeds on the Investor(s) accounts in the relevant amounts. The above also applies in a situation where the Security Agent has carried out the relevant collection or other enforcement actions on a ground arising from any agreement on parallel obligation provided for in the Investment Agreement and/or in the relevant Security Agent Agreement.
The Security Agent keeps the funds referred to in section 19(c) as a mandatary in the Security Agent's own name on a current account that the Security Agent has opened for that purpose in a credit institution. The Security Agent keeps the relevant funds separately from its own funds. The Portal Operator does not calculate and no interest is payable to a Investor on the funds received by the Security Agent.
The Republic of Estonia is deemed as the place of performance of the obligations arising from these Terms and Conditions and investment documents.
If any of the provisions of these Terms and Conditions or any provision of any investment document is found to be null and void or otherwise invalid, this shall not have an effect on the validity of the provisions of these Terms and Conditions or investment documents.
Information made available in the portal is not intended to be delivered to or used by persons in any jurisdiction in which it is not permitted or in which its permissibility is restricted by law or other regulations.
The content of the portal is protected by copyright.
An Investor undertakes not to copy, download, save, reproduce, print or otherwise process, whether in part or in full, the content of the portal without the prior written consent of the portal operator. Notwithstanding the foregoing, the Investor may print or save the portal content in the necessary extent if the Investor does so only for personal use and only to the extent reasonably necessary for the Investor to use the services of BitOfProperty.
The languages used in BitOfProperty are Estonian and English. In case of discrepancy between the Estonian and English texts, the text in Estonian is deemed as correct.
Terms and conditions
All investments are subject to risks. The same is with investing in real estate.
We encourage you to diversify your BitOfProperty investments across multiple properties to safeguard against excessive exposure to any one property that could incur issues such as tenant default or a problem specific to that property that impacts valuation.
The value of your BitOfProperty investment can go down as well as up and historic performance is not a guide to future performance.
Please see below risk categories, which you need to consider before making an investment:
Market risk is the possibility for you to experience losses due to factors that affect the overall performance of the financial markets in which you are involved. Sources of market risk include macro-economic, political, social instability, etc. These events can lead to changes in real estate prices and volatility. In order to mitigate the risk, we highly recommend diversifying your investments across different properties and markets.
Currency risk, commonly referred to as exchange-rate risk, arises from the change in the price of one currency in relation to another. Investing in another country or in another currency, you are exposed to currency risk that may create unpredictable profits and losses.
Legal or regulatory risk arises from the fact that the legislative acts regulating the asset, investment activities or taxation of earned income may change during the investment period.
Political risk or country risk is the chance of investment value changing due to the political changes or instability in the country. Radical changes in economic or legal environment (such as nationalisation), internal political affairs or social crisis situations (such as civil unrest) are all examples of political risk.
Occasional oversupply might arise in certain regions or market segments, causing fierce competition resulting in difficulties in achieving planned rental prices.
Investing in only one asset className and/or market may impose concentration risk of your investment. The risk can be reduced by allocation money between different asset class names and/or markets, thus in case some investments underperform and other stays neutral or perform well, then you will not lose all your money.
Whilst you can advertise your share in the investment for sale to other BitOfProperty users at any point, there may not be anyone willing to buy your investment at a price that you deem reasonable (or buy it at all). In such event, you will be required to wait until the end of the investment term. Even at this point, the timing and ability to exit will depend on the completion of a transaction to sell the underlying property. This transaction could take several months.
Whilst BitOfProperty provides gross rental income estimates based on information from third parties, these are not guaranteed. It may be that lower rents are secured. Furthermore, rental income could cease completely for certain periods. For example, if a fire were to occur which was not covered by insurance.
Vacancy refers to the situation when there is no tenant in the property. When it happens, you are immediately exposed to the loss of rental income and a decrease in the investment returns.
Bad tenants refusing to pay rent or leave the property in worse shape before moving in, can significantly reduce the value of your real estate investment. Disputes with tenants may take a long time and incur significant expenses. The lack of rental income might lead to temporary losses in times where ownership expenses exceed current income.
Technical risk describes a situation where real estate investment’s covert technical defects can cause a decrease in rental income or adversely affect the property's sales price. Technical risks may lead to the need for unplanned repair costs and renovation.
Location risk refers to the situation where the property’s location might become less favorable over time, which might lead to the reduction in rental income or potential sale price, thus having an adverse effect on investment’s overall profitability.
Each property investment is separately ring-fenced from the assets and liabilities of BitOfProperty, as well as any other property investments on the platform.
If BitOfProperty were to fall into financial distress an alternative manager could be appointed to continue management of the assets in accordance with the terms of investment.
Any funds that are held in your account, but not yet invested in property, are held in a client monies bank account. This is a separate bank account that is ring-fenced from the monies of BitOfProperty and will be returned to investors in the event of BitOfProperty falling into financial distress.