Trust – Property in Singapore for rent
Trust is a legal arrangement by which a person (s) or a company (known as trustee) is appointed to take care and administer property for the beneficiary. Property in Singapore for rent.
Anyone who is over 21 years old, of sound mind and capable of owning land can be a trustee. The Trustees Act limits the maximum number of trustees for land to four.
For a trust to be valid and enforceable, it must contain the following elements:
(a) The title to the property is transferred to the trustee
(b) There must be a declaration of the trust
(c) The following items must be present:
- Intention to create a trust;
- The subject matter of the trust; and
- Who are the beneficiaries of the trust
The Trustees Act specifies the power and responsibilities of trustees as follows:
(a) A trustee shall abide by the terms of the trust.
(b) The trustees are jointly and severally liable for any breach of the trust.
(c) A trustee shall not profit from the trust
(d) A trustee shall invest the assets of the trust in accordance to the standard investment criteria set out in the Trustee Act regarding suitability and diversification of investments.
Under the Residential Property Act, any sale of a restricted residential property to a Singaporean that is holding the restricted residential property in trust for a Singapore permanent resident or a foreigner shall be null and void.
An example of a trust is that of a real estate investment trusts (REITs). A REIT is a company that owns, and in most cases, operates income-producing real estate. REITs own many types of real estate including retail, office, industrial, hospitality and residential. Individuals can invest in REITs by purchasing their shares. REITs typically offer investors high yields on top of the possible increases through appreciation of property prices. It is also a highly liquid method of investing in real estate without needing a large amount of capital.
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