DOCUMENTS TRADING AGAINST PROPERTY

Recently a trade program has commences where in an immovable property situated in India can be offered from trade program which is having a value of more than Rupees 100.00 crore only can be offered for this Program . The advantage in this program is that there is no need getting Safe keeping Receipt SKR which means there are no huge expenses involved and there are no upfront charges.

RETURNS

The owner of the Property gets 200% (non-refundable) value of the property. The Payout is given as a bullet payment mode. The returns are more when the value of the property is more. THIS IS NOT A LOAN BUT SHARE OF PROFIT FOR THE PROPERTY OWNER AND HENCE IT DOES NOT HAVE TO BE REPAID.

STEP- BY – STEP PROCEDURE

I

The following supported documents are required

DOCUMENTS OF THE PROPERTY

  1. The extracts of 7/12 , 8 , 8-A
  2. Property Card.
  3. Schedule –II
  4. Sale Agreement. Title Deed from the first owner to the current owner.
  5. Valuation Report prepared by a government approved valuer. Not old than one year.
  6. Search Title report carried out by an advocate / solicitor from the approved panel showing search for at least 30 years. (Not older than 3 months).

KYC DOCUMENTS OF THE OWNER

  1. Color Xerox of the Passport
  2. Color Xerox of the Permanent Account Number (PAN CARD).
  3. Copy of a Photo Identity Proof.
  4. Copy of Residence Proof
  5. Copy of Bank Passbook ( For Identification)
  6. Copy of Cancelled Cheque.

II

All the above mentioned documents are to be scanned and forwarded to the Indian Authorized Franchisee on Email, Who forwards the same to the overseas company. Within a week the overseas company gives approval /rejection of the property along with an offer if approved which is issued in the name an owner of the property.

This offer is handed over to the owner personally by the Indian Authorized Franchisee. After verifying all the original Documents.

III

The client needs to send an acceptance letter for the open offer that he is accepting the offer and willing to proceed for the trade and sign and scan all the agreement papers. If the owner accepts the offer, he is asked to come forward for execution of agreement with the main person from the overseas company. This person again verifies the veracity of the original documents. After satisfactory scrutiny he executes the necessary agreement with the owner of the property. The owner has to give equivalent of US Dollars 20,000 to the main person of the overseas company towards opening a company in Hong Kong and a Bank account with HSBC BANK in Hong Kong in the name of the proposed company.

The owner does not have to travel to Hong Kong for this purpose. The main person gives a counter cheque of the same amount as a security for the amount. Given by the Owner

IV

The main person after returning to Hong Kong completes the procedure of opening of the company as well as bank account with HSBC bank in HONGKONG. The owner gets updates at each stage. The purpose of opening a company and bank account in Hong Kong is that the trading activity is not permitted in India.

V

After completion of all requisite procedures the traders instructs the bank to make, MT103 Wire Transfer, The funds to owners account so open with HSBC Hong Kong. HSBC BANK HONG KONG then obtains approvals from the reserve bank of India. (RBI) giving all the details of the transaction. After getting the RBI Approval HSBC Hong KONG remits the funds after deducting TDS of 12.5% to the owners designated bank which is mentioned in his customer information sheet. (CIS).HSBC Hong Kong issues a certificate to the owner’s designated bank that the funds remitted are clean, clear and are of non-criminal origin.

VI

The funds which are received in the owner’s bank are with specific instructions to the bank. The owner is not allowed to withdraw these funds till he fulfills certain procedure. HE HAS TO LODGE THE ENTIRE ORIGINAL DOCUMENTS WITH HSBC BANK IN INDIA WITHIN THREE DAYS OF THE RECEIPT OF THE FUNDS WITHOUT FAIL. FAILING TO DO SO WILL RESULT INTO FUNDS BEING RETURNED INTO HSBC HONGKONG. THE NAME OF THE BRANCH OF HSBC BANK WILL B EINFORMED TO THE OWNER WELL IN ADVANCE. THE DOCUMENTS ARE TO BE LODGED FOR A PERIOD OF 366 DAYS AND HSBC BANK ISSUES SAFE CUSTIDY RECEIPT FOR THE DOCUMENTS LODGED WITH THEM.

FAQS

Ownership:

The agreement for the deal is executed only with the owner and not his power of attorney holder. This can be deviated only in select cases where the owner is very old or immobile. In such cases the agreement can be executed by his next of KIN who has been authorized by the owner. In such cases copies of Passport of both the persons are mandatory.

In case the property is owned by more than one person, then the agreement can be executed by one of the owners provided the remaining joint owners ECU authorization in his name. In such cases PASSPORT of the authorized person is mandatory. The KYC documents of the rest of the joint owners are mandatory.

In case a property is owned by a company. Then a valid board resolution giving authority to a particular Director of the Company is mandatory. However the KYC documents (including) Passport copies) of all the Directors of the company are mandatory.

Fund and Security

When clients spare their funds for opening and registering venture in offshore, there funds will be secured by coordinators offering a counter cheque which is throughout the country or making out CASH.

Timing:

The Cheque which has been offered by the coordinator is issued after 45 days after the date of execution of the agreement.

Offers:

The offer which is provided at initial stage will not be changed after signing the agreement by the owner.

Why OFFSHORE:

The question of opening up an account and a venture in offshore is must and initial stage for getting to Trade Program. Secondly the trader does not provide any initial payment support because the Traders are the bank employers and they have any fundamental right to help out in operating account. When a client supports for their own needs the would stick with the program until the end of the process

TAXATION:

There would be an initial 12.5% tax deducted as per the by-Lateral Tax Treaty with the Hong Kong government while the funds are being transferred to the owner’s account from the Trader’s account. Please note that since the funds received by the owner have been tax deducted the owner can freely utilize the funds as per his wish.

Supportive:

From the day one till the owner gets his funds coordinators and the Traders will provide their support to get this transaction a successful one.