PropertyHandle

Regulatory Sandbox Status

PropertyHandle Africa is currently operating under the Securities and Exchange Commission of Zimbabwe (SECZ) Regulatory Sandbox framework. This means certain regulatory requirements may be relaxed during the testing phase. Investments made during this period carry additional regulatory uncertainty risks.

Risk Disclosures

Important information about the risks associated with investing through PropertyHandle Africa.

IMPORTANT: CAPITAL AT RISK

Investing in property tokens involves significant risk, including the potential loss of your entire investment. You should not invest money you cannot afford to lose. Past performance is not a reliable indicator of future results.

The value of investments and any income derived from them can go down as well as up. You may receive back less than you invest.

1. Property Tokenization Risks

1.1 Novelty of Asset Class

Property tokenization is a relatively new form of investment. The regulatory framework, market practices, and technology are still evolving. This creates uncertainties that do not exist with traditional property investments or securities.

1.2 Token Value vs Property Value

The value of your tokens may not directly correlate with the underlying property value. Token prices on secondary markets are influenced by supply and demand, which may result in tokens trading at a discount or premium to the property's net asset value.

1.3 Smart Contract Risks

Property tokens are created and managed through smart contracts on blockchain networks. While we employ rigorous security audits, smart contracts may contain bugs or vulnerabilities that could result in loss of tokens or inability to transfer them.

2. Real Estate Investment Risks

2.1 Market Risk

  • Property values can decline due to economic downturns
  • Local market conditions may deteriorate
  • Interest rate changes affect property valuations
  • Currency fluctuations impact USD-denominated values

2.2 Rental Income Risk

  • Properties may experience vacancy periods
  • Tenants may default on rent payments
  • Rental rates may decrease in unfavorable markets
  • Projected yields are estimates, not guarantees

2.3 Property-Specific Risks

  • Unexpected maintenance or repair costs
  • Natural disasters or structural issues
  • Zoning changes or regulatory restrictions
  • Environmental contamination or compliance costs

3. Liquidity Risks

3.1 Limited Secondary Market

Unlike publicly traded stocks, property tokens may have limited liquidity. You may not be able to sell your tokens when you want, or at a price you consider fair. The secondary market for property tokens is still developing.

3.2 Lock-up Periods

Some investments may have lock-up periods during which you cannot sell your tokens. These periods typically range from 12 to 36 months depending on the specific property offering.

3.3 Exit Uncertainty

Property sales are subject to market conditions and may take significant time. The ultimate exit value and timing are uncertain.

4. Zimbabwe-Specific Risks

4.1 Currency Risk

Zimbabwe's currency situation presents unique risks. While investments are denominated in USD, local economic conditions and government policies may affect:

  • Ability to repatriate funds
  • Exchange rate fluctuations
  • Banking system reliability

4.2 Political and Economic Risk

  • Changes in government policy affecting property rights
  • Economic instability affecting property markets
  • Potential for capital controls or restrictions

4.3 Legal and Regulatory Risk

  • Evolving regulatory framework for digital assets
  • Property law complexities and title registration
  • Enforcement of contractual rights

5. Platform and Technology Risks

5.1 Cybersecurity

Despite robust security measures, there are risks of:

  • Hacking or unauthorized access to systems
  • Data breaches
  • Platform outages or service interruptions

5.2 Operational Risk

  • Failure of PropertyHandle Africa as a company
  • Key personnel departures
  • Third-party service provider failures

5.3 Blockchain Technology

  • Network congestion affecting transactions
  • Hard forks or protocol changes
  • Wallet security and private key management

6. Regulatory Sandbox Limitations

Operating under the SECZ Regulatory Sandbox means:

  • Certain investor protection regulations may not fully apply
  • The business model is still being tested and validated
  • SECZ may require changes to operations or terminate sandbox participation
  • Full regulatory approval is not guaranteed after sandbox period
  • Maximum investment limits may be lower than fully licensed platforms

7. No Financial Advice

PropertyHandle Africa does not provide financial, investment, legal, or tax advice. The information on our platform is for informational purposes only. Before making any investment decision, you should:

  • Consult with a qualified financial advisor
  • Consider your own financial situation and risk tolerance
  • Read all property-specific offering documents
  • Understand the tax implications in your jurisdiction

8. Acknowledgment

By investing through PropertyHandle Africa, you acknowledge that you have:

  • Read and understood these risk disclosures
  • Assessed your own financial situation and risk tolerance
  • Understood that you may lose some or all of your investment
  • Accepted the risks associated with property tokenization
  • Acknowledged the regulatory sandbox status and its implications

9. Contact

If you have questions about these disclosures or the risks of investing, please contact:

  • Email: legal@propertyhandleafrica.com
  • Phone: +263 778 132 080 / +263 771 339 140