Notice Regarding the Formulation of a 'Solicitation Checklist' for Real Estate Specified Joint Enterprises

Frequently Asked Questions

Q: What is the purpose of the newly formulated 'Solicitation Checklist' for Real Estate Specified Joint Enterprises?

A: The purpose of the Solicitation Checklist is to promote industry health and protect investors by ensuring operators provide comprehensive information, thereby improving product transparency and guiding investors in making informed decisions based on risk and return evaluation.

Q: Who developed the 'Solicitation Checklist' and when did the discussions leading to its formulation begin?

A: The Solicitation Checklist was formulated by the Real Estate Crowdfunding Association and the Real Estate Specified Joint Enterprise Council, following discussions that began in September 2025 at the 'Self-Regulation Rule Review Committee'.

Q: What are the main content areas covered by the 'Solicitation Checklist' for different types of Real Estate Specified Joint Enterprises?

A: The Solicitation Checklist is divided into sections for Discretionary Association types and Anonymous Association types, covering Yield Details, Presentation, Basis, Product Type, Related Party Transactions, Master Leases, and Re-solicitation.

Q: What specific information regarding yields must be clearly stated according to the 'Solicitation Checklist'?

A: Operators must clearly state that displayed yields are pre-tax, explain taxes on distributed dividends, detail the breakdown of projected yields and their sources, and clarify the basis for projected yields and sale prices.

Q: What important disclosure is required if loans are involved in a Real Estate Specified Joint Enterprise product?

A: If loans exist, it must be clearly stated that loan repayment takes priority over repayment to investors, and the specific uses of funds/loans, including those other than property acquisition, must also be clearly stated.