Tag: Trusts

Property Conveyancing and Ownership of Land

 

When it comes to purchasing property in New Zealand the property can be purchased in several types of entities such as:

  1. Individuals.
  2. Limited Companies.
  3. Trusts.
  4. Partnerships.

When it comes to registration of the legal property owners on the Title it can only be Individuals or Limited Companies. In the case of Trusts and Partnerships it is the Trustees of the Trustees and or Partners of the Partnership who are registered on the Certificate of Title.

Co- Ownership relates to the situation where two or more persons are entitled to possession of the same land. Each is entitled to possession of the whole of the land rather than any particular part. The three types of common ownership which exists are:

* Tenancy in Common.

* Joint Tenancy.

* Or under the Joint Family Homes Act 1964.

 Tenants in Common – exists when two or more persons hold defined shares in land. The number of shares to be allocated to each person may depend on the amount of financial contribution being invested in the property purchase or property investment. i.e It could be a share allocation of 50/50 each or 60/40 or 70/30. You would need to advise your Conveyancing Practitioner how the shares are to be allocated so they can prepare the Transfer of Land document accordingly. More importantly each owner of this type must make a provision in their estate as to who they want their share of the property to pass to.

Joint Tenants – When you are registered on the Certificate of Title as Joint Tenants each person has an equal undivided interest in the property transfer and upon the death of either person, the survivor becomes the owner of the deceased person’s interest upon registration of a Transmission Application lodged with Land Information New Zealand.

Both Joint Tenancy and Tenancy in Common give equal rights of possession to each co-property registered owner, and can also be used for real and personal property.

If you are not sure which is the best type of registration for you to purchase property in, always check with your Registered Conveyancing Practitioner.

https//www.propertyconveyancingservices.com

 

Trustees and Trusts

January 26, 2011

When a property is registered in the name of a Trust, and the property has been sold it must be noted:

All Trustees of the Trust must sign the Contract of Sale and or Agreement for Sale and Purchase. 

How do you identify the Trustees of a Trust? -

1.  Obtain a copy of the Trust Deed from the Vendor.

2.  Complete a Title Search. Are the Trustees of the Trust registered on the Title?

3.  Do the Trustees of the Trust have the power to sell the property?

4.  Enquire to make sure none of the Trustees have had their rights revoked under the Trust.

5.  If the Trustees of the Trust are a Company, complete a Company Search to check who the Directors are. All Directors will required to sign the Contract or Sales and Purchase Agreement.

For further advice and help on Trust please contact us. Cheers Kim :)

Trusts

November 30, 2009

What are the essentials of a Trust;

* Settlor

* Assets

* Trust deed document

* Trustees

* Beneficiaries.

The Settlor must be over the age of 20. It can also be a Company or another Trust, and you can have more than one Settlor.

Trustees can be anyone who can own property.  Trustees are given a big responsibility and must ensure they are familiar with the terms of the Trust this includes record keeping of decisions and actions. Trusts also allow for an independant Trustee to be appointed.

Beneficiaries these are the people who will benefit from the trust. If the Trustees breach any obligation the Beneficiaries can take legal action.

Stay posted :}

Trusts

November 23, 2009

Trusts – a Trust deed is a legal document creating a relationship between a person who places assets under the control of a Trust for the benefit of people or for specific reasons. The person placing assets in the trust are known as the Settlor, the control of the assets under the trust are known as the Trustee and the people who are to benefit are known as the Beneficiaries.

The assets transferred to the trustees becomes their property, but it is for the benefit of the beneficiaries. Trustees have a legal obligation to deal with the assets of the trust in accordance with the trust deed. Generally there will be more than one trustee of a trust.

Stay posted for more general advice around trusts. Warm regards Kim

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