FAQs

Every real estate operation inherently carries some level of risk, which can vary. No operation can be considered 100% safe.

At Stock.estate, we prioritize the security of the investments of our users. Therefore, we prefer to propose operations that entail reduced risk, even if the prospects of gain might be slightly less. Our team carefully verify each operation, constantly monitoring it throughout its duration.

As a result, the likelihood of losing the entire capital is low, especially considering that we diversify with properties located in attractive areas and only after carefully evaluating the most current market trends. Moreover, most projects are backed by real estate guarantees.

Stock.estate performs an in-depth economic, fiscal, and accounting analysis of the companies that propose a project to our investors. In the documents section of each project, you will find a Key Investment Information Sheet, specifically created to ensure total transparency.

Regarding the operational part, the transfer of funds is carried out through the payment institution Banca Comercială Romana (BCR). The capital is deposited in a digital wallet that is not accessible to the project's proposing company until the fundraising is complete.

Additionally, every real estate developer has the option to provide loan insurance or offer a guarantee to investors. This will be present in the documents section and in the contracts that will be digitally generated by the platform. Usually, guarantees are mortgages, bank guarantee letters or pladges of shares.

All investments are subject to risks and real estate is not an exception. We recommend you diversify your Stock.estate investment portfolio across multiple property types to protect you from market fluctuations and other issues, which could appear during the long term investment horizon, as property prices and rental fees level depend on various economic situations.

Stock.estate’s and its members’ business and assets are kept strictly separated.

Member’s investments are not part of Stock.estate’s assets.

The ceasing of Stock.estate’s activities will result in not having new investment opportunities on the platform. The current investments are sustainable on their own and their management is granted by the project developer. Also, the management can be transferred over to any other capable management company.

It is more likely to avoid losses by diversifying your investments, focusing on areas where you have experience and in businesses in which you strongly believe.

The Investor acknowledges that it fully understands and assumes the risks associated with the investment in crowdfunding projects, some of which are summarized below in a non-exhaustive manner.

Investment in crowdfunding projects entails risks, including the risk of partial or entire loss of the money invested.

The Investor’s investment is not covered by the deposit guarantee established in accordance with Directive 2014/49/EU of the European Parliament and of the Council on deposit guarantee schemes or the related provisions of Romanian law.

The Investor’s investment is not covered by the investor compensation schemes established in accordance with Directive 97/9/EC of the European Parliament and of the Council on investor-compensation schemes or the related provisions of Romanian law.

An investment in a crowdfunding project includes the risk of losing all the invested capital.

There is a risk that the Investor will not receive any repayment of his investment (he will not receive all or part of the interest from the loan contract from the Project Developer, or even that the loan granted to the Project Developer will not be repaid at all).

Participation in Fundraising is not a saving product and Stock.estate advises the Investor not to invest more than 10% of his or her net income in crowdfunding projects.

The Investor may not be able to sell the investment instruments when he wishes. Even if the Investor is able to sell them, he may still be subject to losses. In this regard, the Investor may not be able to sell/transfer the receivables from the loan contracts when he wishes. And even if he can assign/transfer them, the Investor may still be subject to losses because he may not be able to assign them at a price equal to the entire value of the loans.

Taking into consideration the nature of the commercial companies, please note that there may be limited information - financial, operating or otherwise - regarding the Project Developer. There is a risk that: (i) there are facts or circumstances pertaining to the Project Developer that the Investor is not aware of, and (ii) publicly available information and information on the Platform concerning the Project Developer may prove to be inaccurate and, as a result, the Investor may suffer a partial or complete loss of the investment.

In most cases, yes. However, with Stock.estate campaigns, the higher yield paid stems from other factors as well, including a premium paid by the developer for faster access to financing, a desire to diversify funding sources, and the benefits of indirect marketing gained through such fundraising.

Reporting the investment, which is made in Euros, to the national currency (RON) only brings benefits because the trend has been one of Euro appreciation. Therefore, your investment, in relation to RON, will yield an additional amount by assuming currency risk.

Like any risk, it exists but from our point of view, as we focused on being among the first ASF authorized platforms in Romania and Italy, we also have a constant focus on being compliant with any legislative requirement. So what concerns the legal compliance of Stock.estate, we can guarantee you our serious and constant follow-up of the subject.

The legislative changes, generally fiscal, it is best for each investor to follow them individually, together with the possible information that we would give you proactively, when we become aware of them.

Stock.estate is an authorized company under the European Crowdfunding Regulation (EU 2020/1503), ensuring compliance with stringent financial regulations. Investors' funds are held in a special collector account at Banca Comercială Română (BCR), a major financial institution in Romania. This account is specifically designed for financial entities and ensures that investors' money is kept separate from the company's own funds, providing protection in case of Stock.estate's default.

However, once the funds are transferred to the loan beneficiary for a specific project, they are no longer under Stock.estate's custody and will be used for the project as per the contract. At this stage, deposit insurance no longer applies because the money is actively financing the project.

While a total loss is theoretically possible, it is extremely unlikely. All projects on Stock.estate undergo rigorous due diligence and are secured by mortgage guarantees equal to 150% of the loan value.

In the event of a default, we expect to recover the invested capital through court proceedings. However, the recovery process may take time, and the borrower can contest repayment, which could make full recovery longer or more complex. So while total loss is a remote possibility, it is considered highly improbable.