Trust management 
How to place your project into trust management
As a developer, especially that of a real estate not being the main place of residence for the owners and being located in the popular recreation areas, you can be interested in the scheme of arrangement of the sales based on the shared use of each real estate unit at your development. Whereas such organization of the sales presupposes the raise in the cost of the project (usually within 0.5-0.7% per each million Euro of the sales), it allows to raise the circle of the potential buyers exponentially.
Herewith, there’s no limitation for the property share from the total volume of your development that could be transferred to trust management in favor of the co-owners. You can admit the solution that only one of several buildings or only 10-20-50% of the space will be used for the shared ownership.
Necessary and, perhaps, the only condition for the organization of fractional sales is a clear and unambiguous separation of full ownership for the real estate transferred to the trust management. Such rights should be valid, completely free from existing or future encumbrances.
When implementing the scheme of joint ownership of such real estate, a legal entity will be registered, the equivalent owners of which will be the trust and the developer. Fraction real estate will be re-registered for such company and then the trustee can proceed with the distribution and control of the rights to use such real estate in favor of the developer's clients.
If you are a developer and want to learn more about how trust management can increase your sales and what additional benefits, including tax reduction such a scheme grants, write us a letter with brief description of your development project and what advantages you would like to receive through the use of trust management of this building, in whole or in part.
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