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Investor Terms & Conditions

Terms governing property investments and investor responsibilities

Last updated: 9/11/2025

Important Notice

By investing through Props, you acknowledge that you understand the risks associated with property investment and agree to be bound by these Investor Terms. Your investment is at risk and you may lose some or all of your invested capital.

1. Investment Process

Pre-Investment Requirements

Before you can invest in any property on our platform, we must complete the following checks as part of our legal obligations:

  • Identity Verification: We will verify your identity using government-issued identification documents
  • Anti-Money Laundering (AML) Check: We will conduct checks to ensure compliance with anti-money laundering regulations

These checks are mandatory and must be completed before any investment can proceed. We will guide you through this process when you register to invest.

Investment Process

Once verification is complete, when you invest in a property through Props:

  • You purchase shares in a holding company that owns the property
  • You become a shareholder in the holding company alongside other investors
  • Your ownership percentage in the holding company is proportional to your shareholding
  • You are entitled to your proportional share of net rental income from the property
  • You are responsible for your proportional share of property costs and expenses

Important:

You do not own shares directly in the property itself, but rather shares in a holding company that owns the property. This structure provides certain legal and tax benefits while maintaining your economic interest in the property's performance.

2. Fees and Income Distribution

Rental Income Distribution

Rental income from properties is distributed as follows:

  1. Management Fee: Props charges a management fee for property management services
  2. Maintenance Budget: Annual maintenance budget is allocated for property upkeep
  3. Net Profit: Remaining income is credited to investors' accounts according to their share ownership

Example Income Distribution:

• Gross Rental Income: £12,000 per year

• Management Fee (10%): £1,200

• Maintenance Budget: £2,000

• Net Profit to Investors: £8,800

• Your Share (10%): £880 per year

Account Management:

On-Account Payments: Rental income is credited to your investor account, not deposited directly into your bank account.

Withdrawals: You can request to withdraw your funds at any time through the platform.

Withdrawal Process: Once a withdrawal request is received, we will contact you to confirm the transaction. After confirmation, it may take up to 14 days for funds to be transferred to your requested bank account.

Recommended Retention: We advise retaining funds on the platform to facilitate payment of approved work orders and avoid delays in property maintenance.

3. Maintenance and Repairs

Significant Repairs Responsibility

Investors are responsible for funding significant repairs to a property if the cost to repair exceeds the maintenance budget. This includes major structural repairs, roof replacements, heating system overhauls, and other capital improvements.

Work Order Process

  1. Props identifies necessary repairs or improvements
  2. Work order proposals are sent to all investors
  3. Investors have 14 days to respond to proposals
  4. Non-response after 14 days is considered abstaining from the vote
  5. If majority of investors approve, payment is deducted from your investor account
  6. Work proceeds only after payment is confirmed from all investors

Important:

You are required to respond to work order proposals within 14 days of being notified. Non-response from an investor after this time period is considered to be abstaining from the vote to proceed. If the majority of investors approve the vote, all investors are responsible for paying their share of the work.

4. Property Management

Props Responsibilities

  • Market the property and attempt to place tenants
  • Manage tenant relationships and rent collection
  • Coordinate property maintenance and repairs
  • Provide regular investment reports and updates
  • Handle day-to-day property management tasks

Limitation of Liability:

Props is not responsible if the property remains vacant. While we will make reasonable efforts to find and retain tenants, we cannot guarantee occupancy rates or rental income. Market conditions, property condition, and other factors beyond our control may affect tenant placement.

5. Property Sales

Property Sale Requirements

The property can only be sold by the holding company if 100% of the shareholders are willing to sell. This ensures that no shareholder is forced to sell their holding company shares against their will.

Secondary Market:

You can sell your holding company shares on Props which means other investors can purchase those shares. This provides liquidity options without requiring the entire property to be sold. However, there is no guarantee that buyers will be available for your shares.

Important Distinction:

When you sell your shares, you are selling your ownership stake in the holding company, not direct ownership of the property. The holding company continues to own the property, and the new shareholder receives the same economic benefits and obligations.

6. Investment Risks

Props is not responsible for loss of investment

Props acts as a platform facilitator and property manager. We are not responsible for:

  • Loss of capital due to property value decreases
  • Loss of rental income due to vacancy or market conditions
  • Unexpected maintenance costs exceeding budgets
  • Market volatility or economic downturns
  • Regulatory changes affecting property investments

Key Risks Include:

  • Property values can decrease, resulting in capital loss
  • Rental income is not guaranteed and may fluctuate
  • Significant repair costs may exceed maintenance budgets
  • Properties may remain vacant for extended periods
  • Shares may be difficult to sell on the secondary market
  • Economic conditions can negatively impact property markets

7. Investor Obligations

Response Requirements

As an investor, you are required to:

  • Respond to work order proposals within 14 days
  • Pay your proportional share of approved work orders
  • Maintain accurate contact information
  • Comply with all applicable laws and regulations
  • Act in good faith towards other investors

8. Dispute Resolution

Any disputes between investors or between investors and Props will be resolved through:

  1. Good faith negotiation and mediation
  2. Arbitration if mediation fails
  3. Legal proceedings as a last resort

All disputes are subject to English law and the jurisdiction of English courts.

9. Amendments to Terms

We may update these Investor Terms from time to time. We will notify investors of any material changes via email or through the platform.

Continued investment through the platform after changes are made constitutes acceptance of the updated terms.

10. Contact Information

If you have any questions about these Investor Terms, please contact us:

Email: legal@props.io
Address: Props Ltd, 9 York Place, Leeds, LS1 2DS

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