Compliance Checklist for Royalties Crowdfunding Operators (EU & International)

Your Complete Compliance Roadmap

Launching a royalty-based real estate platform under contract law doesn't mean launching without compliance obligations. While the regulatory burden is significantly lighter than equity or debt crowdfunding, responsible operators must still meet specific requirements to protect investors, maintain legitimacy, and build long-term trust.

This checklist is based on Block Tech's experience launching 50+ platforms across multiple jurisdictions. Our white-label software includes templates, tools, and guidance for each requirement below.

1. Business Entity & Registration

☐ Registered business entity in your operating jurisdiction
☐ Tax identification number and VAT registration (if applicable)
☐ Business bank account for operational funds
☐ Segregated client fund account for investor deposits
☐ Data protection registration (GDPR in the EU)

2. Real Estate Licensing

☐ Valid real estate agent license (compliant with Directive 2005/36/EC in EU)
☐ License registration with national regulatory body
☐ Continuing professional development requirements met
☐ License visible and verifiable on your platform

For details on why this matters, see our article on why royalties aren't equity and our investor protection guide.

3. Insurance Coverage

☐ Professional liability insurance (errors & omissions)
☐ Cyber liability insurance (data breach protection)
☐ General liability insurance
☐ Property-specific insurance for listed assets
☐ Optional: Rent guarantee insurance for income protection

4. Anti-Money Laundering (AML)

☐ KYC (Know Your Customer) procedures for all investors
☐ AML risk assessment for your platform
☐ Transaction monitoring system
☐ Suspicious activity reporting procedures
☐ AML training for all relevant staff
☐ Record keeping (minimum 5 years)

Block Tech's platform includes built-in KYC/AML verification tools. See our features for details.

5. Consumer Protection

☐ Clear, plain-language terms of service
☐ Transparent fee disclosure
☐ Right of withdrawal information (where applicable)
☐ Complaints handling procedure
☐ Alternative dispute resolution mechanism
☐ Privacy policy compliant with GDPR

6. Legal Documentation

☐ Royalty agreement template (reviewed by qualified lawyer)
☐ Platform terms and conditions
☐ Privacy policy
☐ Cookie policy
☐ Risk disclosure document
☐ Investment information document per property

Block Tech provides customizable templates for all legal documentation as part of our white-label solution.

7. Operational Procedures

☐ Investor onboarding process documented
☐ Property due diligence procedure
☐ Income distribution process
☐ Reporting and transparency procedures
☐ Income disruption handling procedures
☐ Business continuity plan
☐ Data backup and disaster recovery procedures

8. International Considerations

If operating across borders:

☐ Verify real estate licensing requirements in each target market
☐ Review local consumer protection requirements
☐ Confirm AML requirements per jurisdiction
☐ Review tax implications for cross-border royalty payments
☐ Ensure platform language and currency support

For market-specific guidance, see our Europe and Dubai/GCC market pages.

Getting Started

This checklist may seem extensive, but Block Tech's white-label platform covers most technical and documentation requirements out of the box. Visit fractionalpropertyhub.com for a live example of a fully compliant platform.

For more regulatory context, read our articles on MiFID II & ECSP and why royalties aren't equity. Visit our FAQ page for common questions.