How the club and the trust cooperate
The main document determining cooperation of the club and the trust is the declaration about establishment of a club, signed by both parties. It includes detailed description of the parameters and terms of the club operation, membership in the club, termination of membership, and description of the clauses by which the property use rights are distributed between the members of the club. Such declaration is common public document.
One of the essential conditions of the declaration, and hence the existence of the club, is the signing of an agreement between the trust and the club for the provision of trust management services. This is a commercial confidential contract under which, on a reimbursable basis, the trustee (the trust) provides the club with trust management of real estate, as well as distribution services and accounting of the rights to use real estate to third parties.
Such an agreement includes the obligation of joint ownership of real estate, as well as a list of criteria and procedures by which all permitted real estate transactions take place. Such operations include the introduction and removal of real estate from joint ownership, the issuance or alienation of the right to use to third parties.
For execution of the obligations under such agreement, the sides establish a joint legal body on a parity basis that will be an owner of the property in trust management. All expenditures to establishment, operation, accounting reports and so on of such legal body lay upon the club.
For accounting and controlling of fair distribution of the property rights for real estate among the members of the club, described in the declaration about the club establishment, the trust is in regular cooperation with the club and can enter into independent interaction with co-owners.
If a club member holding a trust certificate claims that his rights have been infringed, he/ she may apply to the trust with a description of his/ her problem and provide documents confirming the existence of the problem. If the problem lays within the sphere of the trust authority, the latter can act as an arbiter between the two parts of the conflict, and determine, whether the club member rights were infringed. If so, the trust orders the club to restore justice.
The club can also appeal to the trust if it considers that the member holding the certificate of trust is not in compliance with his obligations. Again, such a complaint should lay within the competence of the trust and relate only to violations of the rights of real estate use and compliance with the contractual obligations between the club and the co-owner for the use and maintenance of joint real estate.
Most of the time, the trust and the club cooperate on the commonplace issues of registration of the new co-owners and modifying the data about them. The scheme of relations between the trust and the club has been tested by the time and confirmed that it is effective and maximally protected for all parties, including co-owners.