How to establish trusting to the co-owners

How do the officials regard to such clubs and associations? What legal status do we have? How are the arising conflicts solved, for example, if the co-owners are eager to sell or re-register their joint property? The answer to such question is one of the basic solutions admitted by the co-owners before the purchase of real estate: who and in what status will own, have the right to use and administer real estate and land under it from the point of view of the official authorities.

Within the decades, it has been elaborated and covered by the legislation the system of joint possession of real estate via a trustee, a company with activity regulated legally and limited by rendering of service in organizing, provision and supervision over joint possession of any property. Such property can be presented by stocks, or shares in the enterprises, means of production or physical goods, author rights or a villa, a house or a flat.

Holiday ownership is a most flexible and convenient system for organizing of property possession. The property is purchased and registered in equal ownership for two parties, a club and a trust (a trustee). Under this ownership scheme, any change in the ownership structure of a particular property requires the consent of both the club and the trust.

The club and the trust agree how they will distribute the property rights for each particular object of property. The common scheme is distribution of the property right per weeks. The club informs the trust about the emergence of a new owner, reports what weekly periods and in what properties the owner has purchased. Trust services are paid by the club and are unavoidable costs, as the trust is a co-owner of the property equivalent to the club, and the club cannot change the trust for the already deposited real estates.

The trust keeps records of all co-owners and provides the co-owner with a certificate only if the required number of weeks for the new co-owner is not occupied by other co-owners. The certificate from the trust is an official guarantee from the trustee that the interests of the co-owner for the use of real estate are taken into account and accepted for the guarantee by the trust (a third party with ownership and disposal rights) to the required extent.

The trust has granted me an opportunity to sleep safe and calm

The word ‘trust’ means ‘confidence’. What is the difference between the notions of ‘belief’ and ‘confidence’? A person can believe blindly, but confidence is a belief supported by actions and deeds. At first glance, a trust is very similar to a normal contract of assignment: one person authorizes another to manage his/ her property in one way or another. However, the similarity is purely external. The peculiarity of the trust is that the thing that is transferred to the management, irrevocably becomes the property of the manager. I can give an example of the situation where the trust is used. An old millionaire retires because he is no longer able to manage his entire fortune. He wants his sons to continue his work, but he does not want to simply give his sons large sums of money, apprehending that young people could squander them. Thus, our millionaire finds a reliable lawyer and concludes a trust agreement with him. Under this contract, the lawyer receives the state of a millionaire (trust founder) in his management. The lawyer undertakes to manage the fortune only and exclusively in the interests of the sons of a millionaire. He (the lawyer) has to finance their education, cover their expenses to set up their own business, etc. At the same time, the trust contract strictly prohibits the lawyer to pay from the allocated fortune for the expenses that would be unreasonable use of money in the opinion of the father (bets on races, excessive restaurant expenses, etc.). The founder of the trust may appoint a fixed annual rewarding for the performed work to the lawyer (Trustee) himself from the amount of the transferred property. Global Actual Services is the personal lawyer of each of us, the members of the club Alliance, that will monitor and guarantee the observance of our rights in any situation having taken control of our possession.

Dmitriy Levitskiy (Ukraine)
Private lawyer