Tokenisation (e.g. Real Estate)
Fundi Finance LLC is working to tokenise real estate in multiple Jurisdictions. Our mechanics work to a series of legal frameworks to assure that the token holders can purchase a security token backed by a share of real estate. The token enforces all the legal rights and protections of ownership to a token holder and promises a return ROI paid in dividends.
The tokenisation system will include these key features:
To legally ensure that token holders are recognised in the ownership share of the invested property.
To be transferable and tradeable to anyone on secondary securities markets or public markets and will abide by securities regulations where applicable.
To provide an adequately detailed prospectus to any real estate investment and review any project LLC before they are available to investors.
To ensure that token holders receive all generated profits from their investment LLC project in dividends.
To give each token holder a right of vote in the governance of each project LLC, examples of this could be voting on contractors used for the LLC in areas such as property management and maintenance or voting on the cash flow of a project LLC.
To tokenize a real estate project, the Fundi Finance system establishes a project LLC for each project, thus creating a separate entity for each project where each LLC is designed to own one discrete real estate asset. The LLC will begin the formation in the same country as the desired real estate project, each LLC will purchase its own asset, and during the set up of the LLC formation, local authorities will be notified that the LLC is owned by split membership represented by (X) amount of tokens.
Even though the LLC will own the real estate asset, the token holders will represent the membership that forms the LLC, therefore giving ownership rights to all token holders. Each LLC project will be allocated its own UIN number information, and each token representing the project LLC will have the UIN number stored in its metadata. The Deed of the Real estate property will contain a legal mechanism to state the real estate asset is owned LLC and the LLC is a membership of entities split into units represented by the token; the purpose of this mechanism is to link the deeds of a real estate asset to the interests of the LLC membership.
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