More Basic Concepts
Trusts
Legal arrangement between a trustee who holds and administer property for the benefit of the beneficiary, there can only be a maximum of 4 trustees, anyone of legal age,has a sound mind and capable of owning land can be a trustee.
-Trustee holds legal interest
-Beneficiary owns equitable interest
Land Trusts
Real property is transferred to a trustee by a trust deed which is registered with Land Registry, Trust is for a definitive term, the time period can be extend but usually 20 years, and trust must state the Intention,Property Address & Beneficiaries clearly.
How to create a Trust?
1. Express trust- Declaration of a trust(during the person's life) in a deed
2. Will-Testamentary Trust
3.Law- Intestate Estate (No will/ Official Assignee)
Types of Trust implied by Law
1. Resulting Trust- like Singaporeans holding restricted property on trust for foreigners
2. Constructive Trust- Using another person's money to make the purchase
3. Unregistered Trust- Seller holding on to the property during the transitional period before completion
Termination of Trust
1.Trustee may resign
2.Court Order
3.When the beneficiary receives the property
4.Upon sale( Trustee can sell the property but the funds collected from the sell has to be passed to the beneficiary)
Real Estate Investment Trusts (REITs)
The purpose of REITs is to encourage participation in large real estate projects by getting smaller investor who wish to have liquidity or do not have high capital to pool their money together, investors buy REITs shares or transfer title to real estate through a trustee, who agrees to manage the property for the benefit and profit of the investors. Investors will receive certificates of ownership as evidence of their investments, these certificates are similar to shares of stock and can be freely traded to anyone,profit from the trust is then distributed to the certificate owners.
-Trustee holds legal interest
-Beneficiary owns equitable interest
Land Trusts
Real property is transferred to a trustee by a trust deed which is registered with Land Registry, Trust is for a definitive term, the time period can be extend but usually 20 years, and trust must state the Intention,Property Address & Beneficiaries clearly.
How to create a Trust?
1. Express trust- Declaration of a trust(during the person's life) in a deed
2. Will-Testamentary Trust
3.Law- Intestate Estate (No will/ Official Assignee)
Types of Trust implied by Law
1. Resulting Trust- like Singaporeans holding restricted property on trust for foreigners
2. Constructive Trust- Using another person's money to make the purchase
3. Unregistered Trust- Seller holding on to the property during the transitional period before completion
Termination of Trust
1.Trustee may resign
2.Court Order
3.When the beneficiary receives the property
4.Upon sale( Trustee can sell the property but the funds collected from the sell has to be passed to the beneficiary)
Real Estate Investment Trusts (REITs)
The purpose of REITs is to encourage participation in large real estate projects by getting smaller investor who wish to have liquidity or do not have high capital to pool their money together, investors buy REITs shares or transfer title to real estate through a trustee, who agrees to manage the property for the benefit and profit of the investors. Investors will receive certificates of ownership as evidence of their investments, these certificates are similar to shares of stock and can be freely traded to anyone,profit from the trust is then distributed to the certificate owners.
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