Frequently asked questions about unregulated investment and how your vineyard works
Can we take more than one part?
Yes, there is no limit as long as the investment doesn’t represent a significative part of your estate.
Can we resell?
Life’s hazards make that even if the first choice was to pass on our parts to our children, we might need money which requires to resell. The resell can’t be guarantee, but it is expected and organized. A waiting list of ‘candidate partners’ is setting up for each of our vineyard through the associates’ network who wish to participate. The resell is certified by notary and the winemaker remains proprietary on the buyback. Hence, few months period is necessary to resell a part. Which means that liquidity is no immediate.
To what price do we resell?
The objective is not to speculate by buying several parts and resell them. Nevertheless, in case of need, shares are upgraded by an expert.
How does the rate of return is calculated?
The vine cost is based on the price per hectare in the appellation and is valued according to the winemaker reputation. Indeed, like every painting, what gives value is not the price of the frame of the gouache, but the artist’s signature. Moreover, the vine value is guarantee by the winemaker capacity to redistribute the dividends (wine bottle) on the basis of this calculation.
How does the vine price is calculated?
Le prix de la vigne est basé sur le prix de l’hectare de vigne sur l’appellation et est valorisée en fonction de l’image du vigneron. En effet,comme pour une toile de peinture, ce qui donne la valeur à l’oeuvre, ce n’est pas le prix du châssis ni de la gouache mais bien la signature de l’artiste. De plus, la valeur de la vigne est garantie par la capacité du vigneron à reverser les dividendes (bouteilles de vin) sur la base de ce calcul.
How do we choose the bottle given to the associates?
The choice is made by the associates themselves. The winemaker gives the choice between two different batch and the selection is made by the associates by majority. The chosen batch will then be given to each associate.
When do we perceive the first bottles?
The first bottles correspond to the vintage investment. They are available after the bottling.
Practicable example: If you become associate in april of 2017, the 2017 vintage will be harvested in September, then vinified, aged and finally bottled between the end of 2018 and the beginning of 2019, thus your bottles will be available.
The aging time varies according to the wine the winemaker wants to do. More the wine is high end, more the aging is long.
Note that when the winemaker pays the dividends, he has already advanced the prunning, culture, harvest and bottling fees during 2 years before to receive the economic return of his work.
What happen if the harvest is lost because of the hail or another climate hazard?
You do not have any financial responsibility, no amount of money will be ask to you nor for capital nor for current account.
Indeed, the structure in which you have invested is not the owner. However, if the climate hazard is turns out, the dividends will be paid pro rata of the shortfall. The winemaker will be confronted to a cash flow challenge because he would have worked a year for nothing and the year after could also be damaged. In addition, he could also lose his distribution circuit, which will be supplied somewhere else.
Do we have to invest again if the vineyards exploitation requests it or if new investments need to be done?
You buy vines and land through an SCI. Your vines are farmed by an operating company which is totally independent. In case of debt or investment, you are not legally bound, it means that you will never have to invest again. Even if the operating company goes bankrupt, we do not have financial responsibilities. In this case we rent the vines to another winemaker.
Is that possible to take a loan to buy shares?
Legally, it is authorized. However, we do not advise it. Indeed, we propose investment for fun and not for financial purpose, you must have the liquidity and do not need it. If you do not have the money or if you may need it, then subscribe for our newsletter et you will be invited to our events without spending a penny.
Can we have money rather than bottle as dividends?
Not at Terra Hominis. The allocated benefits are bottles. Your investment is safe and and pays a certain percentage per year, but your main motivation must be to have fun while producing and drinking your own wine.
If we want to buy wine in addition of the dividends?
You can thanks to a preferential rate. You even have access to the wines of the other estates we have created with the same preferential rate. Example: Mas Angel AOP Faugères – cuvee Prestige 9.70€ rather than 16€ at public price.
If the vineyards grows, de we have to invest again?
No obligation, if we increase the capital, you will have the priority without being obliged to do it.
If we are associate of an estate, do we have access to the others created by Terra Hominis?
Yes, the events and estates are all open to you: the Estate we creating are all cousins…
Can we train ourselves to wine work, harvest… in order to learn?
It is even recommended to do it in order to fully enjoy this wine adventure. Training in the vineyards are done by Languedoc Trajectoire which is an association that has liability with an assurance which is covering you.
Can we have the shares in the children’s names?
Solely if they are over eighteen, failing that, a donation can be done at the majority. In our philosophy, we are not owners of the vines, we are just the holders for the next generations…
Can we propose to our loved ones to take shares?
We operate by co-option and our associates’ loves ones are welcome. However, we are only selecting the ones in line with our values after a meeting.
What is the responsibility of the associates?
The SCI (société civile immobilière) and the GFV (Groupement Foncier Viticole) are limited companies with unlimited responsibility. In this case, the structure is not considerate as farm owner, the risk is thus very low. Moreover, there is nor cost nor loan, costs are under the responsibility of the farm owner. The lease protects the associates and the only writing to the balance sheet is the perception of the farming.
What to do if we hesitate to take a share in an estate?
Above all, do not take it. Our projects are based on fun and join us must be natural. Subscribe to our newsletter, observe what we propose, come to our events and if one day the opportunity arises, ask us how to join us.
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