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⚖️ Investment and Legal Risks

Investing in land in developed Western countries entails limited contractual risks compared to emerging and developing countries. This is because developed nations have clear deed and title registration processes, and ownership history is officially recorded with the government.

All land sale transactions in these jurisdictions follow a defined legal process, often executed with the involvement of a notary.

Transactions that do not adhere to these state and national legal procedures are automatically considered void.

The biggest challenges with acquiring land in emerging and developing countries include:

  • Most lands are not officially registered.
  • Land ownership is often not formally documented.
  • Government departments at central, regional, or state levels may lack complete documentation of land ownership.
  • Land boundaries between towns and regions are often not formally set.
  • Some lands are owned by traditional chiefs (stool land ownership system), while in other regions they are owned by family clans (clan land ownership system).
  • Chieftaincy or family clan disputes are common.
  • The practice of selling the same land to multiple buyers (double land selling) is a significant risk.
  • Official land titles issued by governments are not always 100% secure due to corruption within government agencies.
  • Historical claims to land, such as those violently taken by colonialists, can lead to complex legal issues.
  • Inefficient court systems can take over 7 years to resolve land litigations.
  • Business negotiations can take significantly longer than in Western countries.
  • Key stakeholders may have a "laissez-faire" work attitude and may not value time.

For risk diversification, LandDAO will not deploy more than a certain percentage of its total investment capital in any single category:

  • 25% of its investment capital will be allocated to the emerging countries portfolio.
  • 25% of its investment capital will be allocated to the developing countries portfolio.
  • 25% of the total portfolio capital will be allocated to a single emerging or developing country.