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Let’s take a natural person or an
entity that holds a building in full ownership (or usufruct).
This person can transfer ownership of this building or a right
related to this building to a securitisation vehicle and/or
reserve the right to live there until death or to use it for
a certain period.
The securitisation vehicle will be assigned ownership of the
building (or a similar right) while it will issue bearer securities
representing the property and potential income that arise
there from. These securities will first be handed to the owner
of the building; they will be freely transferable. Simple
tradition is sufficient to transfer ownership.
Holders will be able to give, return, assign, transfer or
sell these securities to other holders. These will be paid
profits related to rent management and upon settlement, the
possible profit related to appreciation achieved on this building.
This method allows the division of risks or investments between
investors who will have been able to acquire only a part of
the building while it was sold in full by the owner (joint
possession).
This transaction allows a group of individual investors to
acquire, via a securitisation vehicle, a significant building
without having to carry all of the investment alone.
This also allows the ownership of a building to take the form
of a bearer security although, by definition, it is registered.
A family can also take advantage of this law by securitizing
(transferring) its registered real estate assets with a securitisation
vehicle and sharing them between its successors. Manual gift
of these bearer securities is not taxable but sufficient to
transfer ownership thereof.
These applications can also be achieved for stocks and bonds.
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