1. Greetings from ASSATZ LLP
Transparency and informed decision-making are of paramount importance to ASSATZ LLP. We have prepared this Risk Disclosure Statement to assist you in comprehending the potential hazards associated with investing in fractional ownership opportunities through our platform and sub-LLPs.
It is crucial to be cognisant of the hazards associated with investing in fractional ownership properties, as they can provide substantial benefits. By engaging in any investment opportunity and utilising our platform, you acknowledge that you have read, comprehended, and will accept these risks. We suggest that you consult with your legal, tax, or financial advisor prior to investing if you have any enquiries.
2. General Investment Risks
Capital Risk: Investing always entails a certain degree of risk, and there is no assurance that you will generate profits. You may experience a partial or complete loss of your investment.
Illiquidity: Fractional ownership investments are not publicly traded and are long-term. There is no assurance that you will be able to find a vendor when you are ready to sell your share, and the process may be time-consuming.
Variable Income: Rental income or property value appreciation is not guaranteed and may vacillate in response to market conditions.
3. Market Risks
Real Estate Market Cycles: The value of real estate fluctuates over time. The value of your investment may be diminished by economic conditions, supply-demand imbalances, and other factors.
Economic Changes: Property values and rental income may be affected by inflation, interest rates, and global events.
Regulatory Changes: The value of your investment or its operation may be impacted by changes in laws and regulations surrounding real estate.
4. Forecasts and Forward-Looking Statements
Market Data Assumptions: Certain forecasts and projections are predicated on publicly available data and industry reports. Although we are of the opinion that these are dependable, there is no assurance that they are entirely precise.
Uncertain Outcomes: Any predictions regarding property values or returns are predicated on assumptions. The actual results may differ significantly as a consequence of unforeseen operational or market factors.
5. Operational and Property-Specific Risks
Property Management: Effective property management is essential for success. Your returns may be diminished in the event of operational issues, delays, or unforeseen costs.
Force Majeure Events: Events such as natural disasters, pandemics, or political instability may disrupt operations or decrease property values.
Maintenance Costs: Your income may be reduced by unexpected repair costs and the need to maintain properties.
6. Liquidity and Exit Risks
Lock-In Periods: Mandatory lock-in periods are present in numerous investments, which means that you will be unable to sell your shares during this period.
Market Conditions for Resale: The likelihood of selling your share will be contingent upon the availability of a buyer, even after the lock-in period has expired. It is impossible to guarantee that you will sell at the price or within the timeframe you desire.
7. Financial and Tax Risks
Leverage: Repayment risks and fluctuations in interest rates may affect the profitability of properties that are financed through loans.
Taxes: This could potentially diminish your net returns, as income from your investment may be subject to taxes such as income tax or capital gains tax. Additionally, tax laws may evolve over time.
8. Minority Ownership Risks
Limited Control: Fractional ownership typically results in a minority stake in the property. This implies that you may not have a say in all decisions.
Reliance on Others: Your returns may be contingent upon the actions or accord of other investors, as key decisions may necessitate their approval.
9. Operational Risks and Asset Managers
Performance Fees: The asset manager may receive performance fees that are tied to profits. This could serve as an incentive for strategies that have a greater potential for risk reward.
Asset Manager Dependence: The asset manager's systems and expertise are the determining factors for your investment. The performance of the property could be influenced by any operational failure, disputes, or third-party issues.
10. Legal and Regulatory Risks
Compliance with Laws: Your investment must adhere to Indian laws and any relevant regulations in your country of tax residency. Your investment may be impacted by modifications to these laws.
Disputes: Investor returns may be impacted or operations may be disrupted by legal claims involving ASSATZ LLP, its sub-LLPs, or third parties.
11. Natural or Man-Made Disasters
Unanticipated Events: Property operations or market values may be impacted by natural disasters (e.g., floods, earthquakes, pandemics) or man-made incidents (e.g., terrorism, economic shutdowns).
12. Professional Guidance
Before making an investment, we suggest that
- You consult with your legal, financial, and tax advisors.
- Conduct a thorough examination of the sub-LLP agreements and terms of each investment opportunity.
13. No Guarantee of Returns
Although we strive to offer valuable investment opportunities, returns are not guaranteed. Future outcomes are not determined by past performance.
14. Acknowledgement of Risk
By investing with ASSATZ LLP, you acknowledge and consent to the following:
- You comprehend the risks outlined in this document.
- You acknowledge and assume responsibility for any potential losses or unfavourable outcomes.
- ASSATZ LLP does not provide any assurances regarding specific returns or outcomes.
15. Liability Limitation
ASSATZ LLP and its sub-LLPs are not responsible for any direct, indirect, or consequential losses that may result from your investment, to the utmost extent permitted by law.
Liability is strictly restricted to the provisions specified in the sub-LLP agreement or related contracts.
16. Changes to Risk Disclosure
We reserve the right to revise this Risk Disclosure statement as necessary. The Platform will announce any modifications, and your continued use of the Platform constitutes your acceptance of the revised terms.
17. Contact Information
Please do not hesitate to contact me with any queries or concerns.
Email: legal@assatz.in
Concluding Remark
Fractional ownership investments are an excellent method of participating in real estate opportunities; however, they are not without risk. Before making a decision, we recommend that you exercise caution, ask questions, and ensure that you are at ease with your decision.