Legal Questions

Our business model is the first of its kind.  As such, we have sought expert legal advice to ensure its legitimacy and we are happy to confirm the advice below.

There are three relevant legal questions.

1. What is the law regarding souvenir plots of Scottish land?
2. Can souvenir plots of land be bought and sold as NFTs?
3. Are these NFTs an investment?

What is a souvenir plot of land?

The Land Registration (Scotland) Act 1979 recognised the concept of a ‘souvenir plot’ 45 years ago.  A souvenir plot was defined as “a piece of land which, being of inconsiderable size or no practical utility, is unlikely to be wanted in isolation except for the sake of mere ownership or for sentimental reasons or commemorative purposes.”

More recently, the Land Registration etc. (Scotland) Act 2012 refined the definition of a souvenir plot as one which is “of inconsiderable size and of no practical utility, and is neither (i) a registered plot, nor (ii) a plot the ownership of which has, at any time, separately been constituted or transferred by a document recorded in the Register of Sasines.”

Opinion of Legal Counsel, David Thomson KC, on souvenir plots of land

We sought counsel from David Thomson KC, on whether the sale of souvenir plots creates a valid legal right in Scots law. In his written opinion, senior counsel confirmed that provided certain conditions are met, the sale of a souvenir plot creates a personal right which is a valid legal right in Scots Law.

We would like to make it clear that when you buy one of our NFT plots, you will obtain a personal right of ownership to your souvenir plot of land.  This is a valid form of ownership, but we will remain as the registered landowner.  This allows us to manage the land on your behalf.

You will not be able to build on or otherwise develop your plot, which forms part of a National Nature Reserve.

Your plot will be identified using the What3Words geolocation system, and we will provide the latitude and longitude coordinates of the centre point of your plot.

Opinion of Legal Counsel, Usman Tariq KC, on Non-Fungible Tokens

We sought the opinion of Usman Tariq, Advocate, on the use of Non-Fungible Tokens (“NFTs”) in the sale of souvenir plots.  According to Counsel:

‘In my view, there is growing consensus in English law that NFTs have the legal status of “property” which can be traded and protected in the courts. It is likely that the same conclusion applies to NFTs under Scots law.

This growing consensus provides sellers with some confidence against those critics who are quick to criticise, or those who are sceptical about NFTs or digital assets more generally’.

Accordingly, counsel concludes that there is no legal impediment to selling souvenir plots of NFTs which convey a personal right to customers.

Considering the two opinions received from senior and junior counsel respectively, it has been confirmed that the sale of souvenir plots conveys a personal right which is a valid legal right in Scots Law.

Souvenir plots can either be sold using the traditional model whereby the customer’s ownership is as recorded on the Certificate of Rights or by utilising NFTs, whereby ownership is recorded on the blockchain which brings additional benefits.

Are Squarecrows NFTs an Investment?

No.  We are not suggesting that your NFT will go up in value.  Our business model is to sell NFTs at an affordable price so that as many people as possible can join our online and offline communities.  We hope to create a popular brand, not an investment product.

The benefits of buying one of our NFT plots are:

• You obtain a personal right of ownership to a souvenir plot of land
• If you sell or transfer the NFT, you transfer the personal right of ownership along with it.
• The transactions are all recorded on the blockchain, providing irrefutable proof of purchase
• You become a member of the Squarecrows community