Manifesto #22/100: ???? Rewriting the Rules: How Legal Frameworks Can Unlock the Power of Shared-Ownership Real Estate ????

?? Short Principle: "The law must evolve to serve the people, not the privileged few!" ????

For too long, real estate has been a playground for the few, where those with capital dictate the rules of ownership and access. But what if the system itself could be rewritten? ?? What if legal frameworks could empower communities and individuals to take a more active role in property ownership and investment? ????

The shift towards shared-ownership real estate requires more than just innovative business models—it demands legal structures that protect investors, incentivize participation, and ensure sustainable growth. ????

?? The Pillars of a Fair and Functional Legal Framework

? Fair Taxation Policies on Real Estate Ownership ??

• Implementing tax incentives for co-owned real estate that supports fractional ownership models and community-driven investments. ????
• Introducing progressive taxation on passive real estate income to prevent extreme accumulation that blocks capital from being invested in innovation, startups, and industrial development. ???? For example: 50% tax on rental income exceeding €10 million per year???? and 90% tax on rental income exceeding €50 million per year. ????
• Encouraging large-scale investors to diversify their capital into productive activities rather than monopolizing real estate assets. ????

? Clear Property Rights and Governance ???

• Ensuring that shared ownership models provide transparent rights, responsibilities, and decision-making structures. ??
• Establishing mechanisms to protect investors from arbitrary decisions or mismanagement. ???

? Regulatory Support for Fractional Ownership ??

• Governments and financial institutions must recognize and support fractional ownership models. ??
• Tax incentives and financial products should be adapted to accommodate new forms of property investment. ??

? Secure and Efficient Transactions ??

• Legal frameworks must facilitate seamless transactions through digital records, smart contracts, and blockchain-based solutions. ??
• Reducing bureaucracy and increasing security will make shared real estate more attractive to investors. ??

? Protection Against Speculative Exploitation ?

• Regulations should prevent corporate monopolization and speculation that strip local communities of ownership. ???
• Balanced policies must ensure that wealth generation benefits all participants, not just a select few. ??

??? The Swiss Legal Framework: A Tokenization Breakthrough????

In 2021, Switzerland issued two key bills that enabled the fractionalization of real estate ownership rights through digital security tokens issued on a decentralized network. This landmark regulation paved the way for modern asset tokenization. Recognizing the potential of this revolutionary legal framework, Assetto ’s founders decided to incorporate and develop the project under Switzerland’s progressive regulations, ensuring a secure and legally robust environment for tokenized real estate. ????

Until national land registries worldwide are fully digitized, Assetto operates as a custodian of ownership rights in the offline world, leveraging Switzerland’s innovative legal system:

In the Land Registry, Assetto is registered as the sole owner. ??

Simultaneously, Assetto registers a mortgage in favor of platform users (co-owners/token holders) to secure their rights. ??

Assetto then issues digital security tokens on the blockchain, backed by real ownership rights, representing fractions of the property. ????

Assetto, acting as custodian, cannot sell the asset unless token holders vote to approve a sale offer. ????

Once approved, the asset is sold, and funds go into an escrow account. The bank distributes proceeds proportionally to token holders based on their holdings. ????

When payouts are completed, the security tokens are withdrawn and burned, closing the tokenization cycle. ????

This approach ensures security, transparency, and democratized access to real estate investment, making it the best available model until full digital land registries become a reality. ????

?? The Future Vision: Fully Digital Land Registries

The future of real estate ownership lies in fully digital land registries interconnected with fractional ownership platforms, ensuring real-time recording of ownership rights. ????

However, this digitization process will take decades, as old land registries contain historical records dating back centuries. In cases where documents exist from as early as the 1300s, historians will need to transcribe and convert these into metadata. ????

Governments worldwide must invest in this transformation to build a truly transparent and efficient real estate system. Until then, the Swiss legal framework remains the most effective solution for real estate tokenization. ???????

?? The Future is in Our Hands

We stand at the threshold of a transformation in real estate, one where communities can reclaim control over the spaces they live and invest in. ???? But without strong legal foundations, innovation will struggle to take root. ??

Now is the time to push for legal frameworks that truly democratize property ownership. Investors, policymakers, and forward-thinking entrepreneurs must work together to craft laws that align with this new reality. ????

The rules of the game are changing. It’s time to make sure they serve everyone, not just the privileged few. ??

?? Viva la Revolución! ??

- Assetto Team ?????