Documents
All properties have a Documents section where you can review specific documents pertaining to the property in order to conduct due diligence.
Click View Documents and you will be taken to a page like the one below:
We will be reviewing all of the Documents in more detail below and providing sample links to view the documents.
The property we will be using as an example is 1773 Ball Rd, Memphis, TN 38114.
Purchase Contract
The purchase contract is an agreement between the seller and the Lofty DAO LLC to purchase the property at a set price.
This contract defines the terms of the transaction, and the conditions under which a sale will occur.
Typically, Lofty purchase contracts contain a 7-10 day inspection contingency and a 30-60 day closing period.
Once a purchase contract is signed, an Earnest Money Deposit (EMD) is paid by the Lofty DAO LLC . EMD's on the Lofty Marketplace are typically $1,000 - $2,000 and go toward the final purchase price. If the Lofty DAO LLC were to back out of the deal because the property was unable to be funded on the Lofty marketplace, the seller would keep the EMD.
Home Inspection Report
Lofty properties come with an inspection report conducted by a professional 3rd party Inspection company.
A home inspector will look at the interior and exterior parts of home like the foundation, structural components, roof, HVAC, plumbing, and electrical systems, then provide a written home inspection report with results.
If there are issues in the inspection report that must be fixed, the seller will either repair these items themselves, or provide a credit to the DAO LLC which will be used to make the repairs post-closing.
Inspection Report Repairs
This document lists the repairs the seller is making to the property based on the findings from the inspection report.
As mentioned previously, if there are issues in the inspection report that must be fixed, the seller will either repair these items themselves, or provide a credit to the DAO LLC which will be used to make the repairs post-closing.
Recent Renovations
This document shows any renovations the seller has made to the property as well as a date for when those renovations occurred.
These renovations may include a new roof, new paint, refinished cabinets, and more.
Operating Agreement
An operating agreement is a legally binding document that limited liability companies (LLCs) use to outline how the company is managed, who has ownership, and how it is structured.
Because each Lofty property is owned by a separate DAO LLC, there is a separate operating agreement for each property.
If you purchase tokens in a Lofty property, your name is not included in the Operating Agreement, as the agreement states that the membership list will be represented by the blockchain of the tokens associated with the DAO LLC. So, your name is instead replaced by your public wallet address. Legally your name isn’t tied to the DAO LLC, your wallet is. Whenever a token is bought or sold, the membership list updates dynamically.
However, we keep records and monitor things so that if someone shouldn’t have access to your tokens, but do, then we ensure that your rental income actually goes to you and the DAO LLCs will vote through governance during the next governance overhaul to recreate tokens and send you your fair share.
Management Consent
This document authorizes the managers of the DAO LLC (Lofty) to enter into the Purchase Contract, and to execute and deliver all other documents necessary to complete the closing of the specific property.
Lofty is the initial manager of every DAO LLC, which is we are listed as the managers in this document. Lofty can be fired as the manager of the DAO LLC by token holders at any time.
Certificate of Formation
The Certificate of Formation is the document you receive from the state of Delaware once your DAO LLC is filed and approved by the Delaware Secretary of State, Division of Corporations.
The Delaware DAO LLC Certificate of Formation is akin to a birth certificate for your newly-created Delaware DAO LLC.
Closing Documents
The closing documents or closing statement is a detailed accounting of all the money involved in the deal. It will have all the amounts both parties have agreed upon. This includes the sales price, pro-rated tax and utility bills, and much more.
The closing documents also include the the deed, the bill of sale, the affidavit of title, and documents that declare tax obligations.
