Frequently Asked Questions

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Curious about how it all works?

We’ve got you covered with answers to the most common questions here. Whether you’re wondering about the investment process, how returns are calculated, or how to manage your ownership, our FAQ section is here to help. Explore these insights to get a clearer picture of what to expect. If you need more details, our team is always ready to assist!

General

Fractional ownership allows multiple investors to co-own a property, sharing the rental income and capital appreciation.

Like any investment, real estate comes with risks. However, we mitigate these through careful property selection and professional management.

You earn a proportional share of rental income based on your investment. Additionally, when the property appreciates in value, you benefit from that increase.

At Realify, the security of our platform and the privacy of all your data is an utmost priority.

Investment

The minimum investment starts from Rs. 5 Lakh and depends on the property you are intending to purchase. Please note that this is subject to change.

We believe in 100% transparency. All property documents, rental agreements, tenancy details, title report, due diligence report, etc. will be available for the investors.

No, Realify does not guarantee any returns. While rental yields on most opportunities listed on the platform are known in advance, the risk that the yield and expected gains will not be realised, remains.
 
Our presentations, webinars, and discussions only indicate projected returns. We advise potential investors to be wary of any scheme which provides guaranteed returns.
Your investments are yours and are absolutely secure regardless of what happens to realify.in.
 
Here’s how-
 
Your investment is in the form of equity shares and compulsorily convertible debentures in a Private Limited Company, incorporated for the sole purpose of acquiring and owning the asset.
 
By virtue of holding equity shares in the SPV, you in turn own the asset.
 
The SPV is bound to comply with statutory requirements such as holding general meetings, filing returns, etc., that are undertaken by third-party consultants. Due to this structure, the ultimate decision-making power lies with the investors alone.
 
Thus even if realify.in is not functional, your ownership and control of the asset remain secure.

Pre Investment

In the unlikely event that a property on our platform doesn’t complete its funding target, any funds that have been committed by investors will be reimbursed to the verified bank account.

No, there is no need to visit the property in person. All required documentation will be signed digitally through a reputed digital signature provider.

Once an initial investment or token advance is paid, a termination fee shall apply for any withdrawals. The fee will be as per the terms mentioned in the Expression of Interest.

Yes, there is an initial 1-year lock-in from the time the property is registered. You are free to sell your holdings thereafter.
 
However, if you have an investment horizon of fewer than 5 years, it is recommended to not invest with Strata or in real estate in general.
Other than an initial acquisition fee which varies depending on the opportunity and SPV formation fees, we charge the following –
 
  • A 1% annual management fee that is charged on the monthly payout.
  • During exit, a performance fee of 20% on the gains above a hurdle rate of 10% IRR will be charged.

No, there will be no management fee charged to investors for as long as the property is not tenanted.

Post Investment

Your investment is completed as soon as the opportunity is fully funded and private placement of your investment is done in the SPV.
Realify generally has a time frame of 60 days to ensure that the property receives complete funding.

The return on your investment is in the form of interest on debentures and is paid monthly.
The interest/coupon rate of the debentures you hold is a function of the rents generated and interest earned on the security deposit.
The return is transferred to your bank account on or before the 10th working day of every month subject to the receipt of rents from the tenant.

Realify will take care of all aspects related to the asset.

Note that the Net Asset Value (NAV) of the property will be updated on a half-yearly basis.

You can exit your investment once the initial 1 year lock-in period is complete. This can be done in three different ways.
 
Asset Sale:
If a lucrative opportunity for selling the asset is available, Realify as the asset manager shall take the necessary steps to evaluate the opportunity.
 
After evaluation, Realify will present it to the investors all related reports and documents to appraise the investors about the sale.
 
Once the asset is sold, the gains (post any taxes and fees) shall be distributed amongst shareholders and remitted to the respective registered bank accounts.
 
Private Sale:
You can sell your fraction/holding to anyone you may know, such as friends or family. You will be required to execute the necessary transfer documents for the same.
 
Realify will provide you with the valuation of your holding should you require assistance in setting a price.
 
Resale Market:
Using Realify’s platform, you can list your fraction/holding on resale market at Realify’s recommended NAV.
 
You will be required to execute the necessary transfer documents for the same. Once a new investor has acquired your fraction, you will be credited your gains (post any taxes and fees) on your registered bank account.

Legal

For each asset listed on the Realify Platform, a Special Purpose Vehicle (SPV) is created in which funds are raised to purchase, own and manage the property.
 
Your investment shall be towards subscription of the shares and compulsorily convertible debentures of the SPV that holds the property and represents your fractional investment.
 
Realify will provide asset management services to the SPV and undertake accounting, secretarial, reporting, leasing, maintenance, and other operational aspects under the asset management services contract with the SPV.
A Special Purpose Vehicle is an entity incorporated/created under the law, being a Partnership firm, LLP, a private company, etc., for a specific lawful purpose.
 
Any investment opportunity listed on the Realify platform will be owned by an SPV being a private limited company set up for this specific purpose.
Realify undertakes the legal due diligence of the property before it is purchased by the SPV. All investment and property-related legal processes are handled by Realify.
 
However, you are welcome to seek tax and legal advice from your advisors to understand if the opportunity listed is suited for you. Should you engage any legal/tax advisor, we will be happy to answer any questions that they may have.

realify.in has an experienced team that performs thorough technical and legal due diligence before listing any property on our platform. We engage reputed law firms to conduct due diligence on the property title.

Yes. you can view all the asset-related documents including the Lease/Rental/Tenancy Agreement/ Deed or Leave & Licence Agreement.

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