What Happens If Propty Goes Out Of Business?
Har Rhythm Kaur
Last Update há 2 meses
Since your tokens represent legal ownership in the DAO LLC that owns each property, you would not lose your investment if Propty were to go out of business.
In the event of Propty.ai’s closure, each property DAO LLC would continue to exist as a separate legal entity for property holding, tax, accounting, liability, and member ownership purposes. Regardless of what happens to Propty.ai, Inc., the assets and Property tokens of a DAO LLC would remain independent and intact.
The Property tokens would still represent and provide evidence of ownership in the property contained within the DAO LLC and could therefore be transferred on the market as needed, as long as applicable securities transfer rules are complied with. You, therefore, remain the owner of your tokens. In the event of a Propty liquidation, the DAO members would continue to use the management program to determine the best course of action for managing the DAO and its assets. This could include selecting a full-time managing member within the DAO, or the DAO may choose to continue operating in a decentralized manner. The party responsible for processing and servicing the management program will transition from Propty to (State) Law LLP.
Owners will recover pro-rata portions of their principal based on the net proceeds after paying for real estate agents, title, and legal fees. Any funds remaining in the Maintenance Reserves and Vacancy Reserves will also be distributed to Propty token holders.
Owners would redeem their funds by sending their tokens to Propty.ai’s wallet address, which will be managed by the law firm. Once the tokens are received, owners would get funds credited back to them through CAD/USDC. If Propty is no longer in business, we would not be able to buy back the tokens and provide liquidity, so please be aware of this risk.