Real Estate Trust
| Real estate trust in the type of construction development |
When a developer and land owners undertake a development project, they tend to face many problems, such as:
-
| 1. |
The developer is worried about the following: the liabilities of land owners, the health of land owners, insufficient trust among buyers for the developer, and the terms of the loan are not good. |
| 2. |
The land owners are worried about the following: the developer appropriates the funds for other purposes, the liabilities of the developer, the quality of the construction, the liabilities of other land owners, the health of all other owners, and insufficient trust among buyers for the developer. |
| 3. |
Buyers are worried about the following: All the problems of the developer and land owners mentioned above. |
| The protection offered by the real estate trust |
Other than depositing the development fund into a designated trust account and using the fund only for its intended purpose, land owners will deliver the land to a trust at CTBC. The property right of the land is independent of the land owners. The developer (and other parties in the development project) deliver the right of construction to a construction management company in a trust, and the right to construct is also independent of the original owner of the right.
At the same time, due to the trust relationship, the property right of the land and the right of construction are also segregated from the assets owned by CTBC and the construction management company, improving the simplicity and security of the real estate.
| The advantages of a real estate trust |
To the developer
| 1. |
The benefit of real estate trust in advertisements can increase the willingness to buy the property among consumers. |
| 2. |
This approach has eliminated the problem of multiple land owners or old land owners, making property rights to land more simple and straightforward. |
| 3. |
The composition of developers is simple and the construction can progress smoothly. |
| 4. |
This approach removes interruptions from external factors (creditors of land owners) and ensures that the construction can be completed smoothly. |
| 5. |
This approach prevents the restrictions on joint development deposits or ensures easy recovery of deposits. |
| 6. |
This approach makes it easy to obtain financing. |
For landowners
| 1. |
All parcels of land are delivered to the trust, making property rights simple and secure. |
| 2. |
This approach removes interruptions from external factors (the developer or creditors of other landowners) and ensures that the construction can be completed smoothly. |
| 3. |
Construction funds are used for their intended purposes only, and the developer cannot use them for other purposes. |
For buyers
| 1. |
Reducing the risks of purchasing undeveloped housing that existed in the past - property right risks, funding risks, construction risks - and adding security to ensure the completion of the project. |
| 2. |
The land and the building under construction are delivered to the trust, and the property right is independent. |
| 3. |
Construction funds are used for their intended purposes only, and the developer cannot use them for other purposes. |
| 4. |
Construction progress and quality are monitored. |
| The trust structure of Real estate trust in the type of construction development |
