KEY RISKS, REGULATORY DISCLOSURE AND RISK WARNINGS

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Deed Limited (“Deed”) is fully regulated by the Dubai Financial Services Authority (“DFSA”).

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RISK WARNING: Investments in property and unlisted shares carry a risk. Your capital may be at risk, and you may not receive the anticipated returns.

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No direct Ownership of Property

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Investors will not own the property; rather the investor will have an interest in another legal entity that owns the property. As the investor’s interest in that entity is not listed or traded, it may be difficult to sell the interest because of a lack of investors willing to buy such an interest. So, the investor must be prepared to commit to investing for the full investment period.

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Investment Risks

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Investment in real estate is speculative, the market value of property can fall, and rental income is not guaranteed;

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Deed does not remove any of the risks that you may experience should you acquire a residential property directly and outright (i.e., without a mortgage). Some additional risks are introduced by virtue of shared ownership and timing of your exit.

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Using credit or borrowed money to invest on the Platform increases the level of risk you are exposed to. If the value of your investment declines or if the investment does not yield returns, you will still be obligated to repay the borrowed funds, potentially resulting in a financial loss greater than your initial capital outlay.

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The real estate market can experience a downturn affecting your property valuation. Forecasts and past performance are not a reliable indicator of future performance.

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If for any reason the operator ceases to carry on its business, investors may lose their capital money, incur costs or experience delays in the investment being wound up.

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Advice

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Deed does not provide any investment advice and no assessment is made to determine if an investment is suitable for investors. All information is provided to help you make your own informed decisions. You must rely on your own due diligence before investing, if in doubt, please seek the advice of an independent financial adviser.

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Variable Income

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Whilst Deed 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. In the event of a tenant failing to meet its obligations to the owner of the property, investors will experience a fall in the cash receipts and cash available for distribution to them. From time to time, vacancies can be expected to arise in the operation of real estate assets. In some cases, sizable vacancies may mean there is less cash available for distribution to investors.

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The value of your Deed investment can go down as well as up and historic performance is not a guide to future performance. Achievement of rental and capital returns will depend on a range of factors including the property asset as well as the wider economy. A fall in the value of your investment may be due to a number of reasons, such as a fall in the underlying value of the property or a problem with the property that will need to be funded from future rental income. Economic, political, and legal issues can affect values as they would other asset classes. Any future downturn in the real estate market could materially adversely affect the value and income generated from a property investment. Investors are to individually assess and establish their level of comfort with this risk from the outset.

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Liquidity

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As real estate is an asset that cannot always be easily sold, it may be difficult to sell the property at the end of the investment period, resulting in a delay in investors receiving their capital or in the property being sold at a loss.

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Once the transfer facility is operational, you will be able to advertise your investment for sale to other Deed users at any point. However, there may not be anyone willing to buy your investment at a price that you deem reasonable (or buy it at all). In that event you will be required to wait until the end of the investment term for an exit. Even at this point, the timing and ability to exit will depend on completion of a transaction to sell the underlying property. This transaction could take several months.

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Foreign Ownership Restrictions

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In certain jurisdictions, there may be legal or regulatory restrictions on the sale of property to foreign investors. This can limit the pool of potential buyers and may negatively impact your ability to exit your investment or affect the valuation and sale timeline of the underlying property.

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Client Money

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Clients of Deed are subject to the protection conferred by the DFSA’s Client Money Provisions.

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Client Money will be held separate from Money belonging to Deed; and in the event of the Authorised Firm’s insolvency, winding up or other Distribution Event stipulated by the DFSA, the Client’s Money will be subject to the DFSA’s Client Money Distribution Rules. Interest on Client Money is not payable to you as a Client of Deed.

Custodian Account

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Client Money is held by Deed in a segregated Client Account with (*) and are fully regulated to hold client money for the purpose of investment. Whilst (*)is accountable to Deed for the safe keeping of its Client Money, (*) does not have a relationship with Deed’s clients directly. Therefore, Deed is wholly accountable for our investors “Client Money”. Deed has undertaken due diligence of Banks’s custodial systems and controls and deemed fit and proper to hold Client Money on Deed’s behalf.
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Disclaimer:

Deed Limited is regulated by the Dubai Financial Services Authority (DFSA) for operating a property investment crowdfunding platform. However, the DFSA does not approve or verify the seller, the property, or the information provided about either. The responsibility for conducting due diligence on the seller and the property rests solely with Deed Limited as the Crowdfunding Operator.

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