Annex 1. Aspects of the internal process of Nash21
Analysis of the Tenant Profile Approval process
As a previous step to the creation (issue) of the NFT by Nash21, an analysis of the tenant’s profile will be carried out, based on their individual circumstances, in order to determine the risk of breaching the rental contract and the viability of the operation. This analysis differs in several ways from the usual traditional scoring methods carried out by underwriters or financial entities. Nash21’s Analysis team will study, not just the applicant’s economic and financial situation, but also their social context, behaviour and background. If the income demonstrated by the tenant is not sufficient or their other circumstances are not suitable, they will be asked to provide one or more guarantors for the purpose of strengthening their application and preventing them from being rejected. (Find out the requirements for tenants at www.nash21.com/requisitos)
Methodology in the event of situations of non-payment. Claims.
Bear in mind that NFTs issued come with their rents fully guaranteed and it will be the Guarantee Fund which, from their issue, will assume the payment obligation of all of the rents, regardless of whether the tenant does or does not fulfil their obligation. In situations of non-payment by tenants, the recovery rights will belong to Nash21 who, via its legal team, will carry out different actions aimed at recovering the value of the non-payment. It is worth noting that Nash21's Legal team specialises in this area and has more than 15 years of experience in the rental market field.
The possible actions for repetition and collection include amicable settlement, non-judicial solutions and even judicial proceedings. In all cases, the claims will consist of the sum of the value owed plus the default and punitive interest that may apply. If there is more than one claim or legal claim, the legal and other costs will be added to the claimed amount.
Methodology in the event of legally permitted contract cancellations.
Within the inherent rights of the tenant in any rental contract, there is the entitlement to terminate the contract voluntarily. Depending on the legislation in each country, this voluntary termination can take place after 6 months, after one year or based on the parties’ agreement. Considering that one of the possible uses of Nash21’s NFTs will be the auction or bringing forward of the rents of contracts, we are bound to find ourselves in situations where the owner of the rental contract has already received the rent in advance, for example, for the following year, but finds themselves in a situation where their tenant wants to move out of the apartment halfway through that period. This situation may mean that potentially, and at least for a few days or weeks, the apartment will be empty or in the process of searching for a new tenant. This situation may affect the income flow of the owner. To resolve this situation, the clauses (or annex) of the rental contracts to be tokenised on Nash21 will include the obligation of the tenant to provide 60 days’ notice of their decision to move out of the apartment or terminate the contract. That way, both the owner of the apartment, and Nash21, will have a more than considerable period of time to find and replace the tenant who is leaving. Additionally, if, for some unlikely reason, during these 60 days a new tenant for the apartment in question is not found and there are therefore one or several periods of time without receiving rent because the apartment is empty, Nash21 will continue to pay the corresponding rent in full via its guarantee fund, and it will be the owner's obligation to repay the corresponding amount to Nash21.
In Digital version, include: Claims History (nexus mutual gitbook) Composition of the Fund. Branding Social media channels FAQS
Last updated