10. Selling via Trust Deed
Selling a property via Trust Deed involves navigating the legal framework established within a trust arrangement.
Here's an overview of how this process typically works:
| Establishment of Trust | A trust is a legal arrangement where assets, including property, are held by one party (the trustee) for the benefit of another party (the beneficiary). The terms and conditions of the trust are outlined in a document known as the trust deed. |
| Identification of trustee | The trustee is responsible for managing the trust and its assets, including any property held within it. In the context of selling a property via Trust Deed, the trustee is tasked with overseeing the sale process and ensuring compliance with the terms outlined in the trust deed |
| Authorisation to sell | Before proceeding with the sale, the trustee must verify that they have the authority to sell the property as per the terms of the trust deed. This may involve obtaining consent from the beneficiaries or fulfilling any conditions stipulated in the trust deed regarding property transactions. |
| Valuation and marketing | The trustee may need to arrange for a professional valuation of the property to determine its market value. Once the property's value is established, the trustee may engage a real estate agent to market the property to potential buyers. |
| Negotiation and sale | The trustee, acting in the best interests of the trust and its beneficiaries, negotiates the terms of the sale with prospective buyers. This includes considering offers, conducting negotiations, and ultimately accepting an offer that aligns with the trust's objectives. |
| Conveyancing and transfer | Like any property sale, the conveyancing process is initiated once a sale agreement is reached. The trustee, with the assistance of legal professionals, oversees the transfer of ownership from the trust to the buyer, ensuring all legal requirements are met. |
| Distribution of proceeds | Upon completion of the sale, the proceeds from the transaction are handled according to the terms outlined in the trust deed. This may involve distributing funds to beneficiaries or reinvesting them in accordance with the trust's objectives. |
| Legal compliance | Throughout the sale process, the trustee must ensure compliance with relevant legal and regulatory requirements governing property transactions and trust administration. |
Selling a property via Trust Deed requires careful adherence to the terms outlined in the trust deed, diligent oversight by the trustee, and compliance with legal and regulatory obligations to protect the interests of the trust and its beneficiaries.