FAQ (Legal)
Who will own the title rights of the property?
A Special Purpose Vehicle (SPV) will own the title rights of the property. The Real Estate Token (RET) holders have the right to buyout all other RET holders to redeem the title deed as well as all assets of the SPV.
Would the DAO be the legal owner of the SPV?
The DAO will not be the legal owner of the SPVs. The SPVs will be owned by independent directors and shareholders.
Although the DAO does not exist legally, the legal instrument is designed to limit the rights of the directors and shareholders such that they are not able to sell the underlying Real Estate or the assets of the SPVs – any such sale would fail the buyer's Due Diligence. If the buyer fails to conduct proper Due Diligence, the money they paid for the property and the SPV will be their loss as they will still be unable to legally exercise the right to claim the assets of the SPV, including the title deed to the underlying property.
How is the SPV set up?
There will be a professional director appointed to manage the SPV. They must be licensed and qualified as part of the CitaDAO professional panel.
They are then eligible to submit a quote after a successful IRO listing to be the manager of the SPV. The proposal with the most competitive fees will be awarded the contract to manage the SPV.
Do you conduct AML checks?
Yes, we conduct basic AML checks at the IRO stage.
Is CitaDAO available to any country?
The CitaDAO structure is designed based on Commonwealth law and will therefore only be available to Real Estate in Commonwealth countries in the POC and Beta stage.
We will expand to countries outside the Commonwealth block only after our structure is validated to be legitimate and effective in those countries.
Will you be able to share more details about the legal structure?
We cannot share that at this point in time beyond the legal opinion attesting to the validity of the structure.
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