Real estate trust in the Dominican Republic
Professors Rosso and Uriarte define the trust contract as the legal business by virtue of which a person called trustee transfers in trust, to another person called trustee, one or more assets (which become part of the trust patrimony) so that upon expiration of a term or upon compliance with a condition, the latter may transfer the purpose or result established by the former, in his favor or in favor of a third party called beneficiary or trustee.
- Trustor or settlor is the person who sets up the trust, transferring the ownership of the asset or assets to the trustee, in order to fulfill the specific purpose of the trust (the builder or developer, owner of the land, capitalist).
- Trustee: in general, any person can be a trustee. Therefore, they can be individuals or legal entities, public or private, national or foreign, etc. However, in the case of financial trusts, only financial entities subject to the respective law, or legal persons expressly authorized for such purpose, may offer their services as trustees.
- The beneficiary: is the person in whose favor the administration of the trust assets is exercised. It may be a natural or juridical person who may not exist at the time of the contract or will, provided that the data allowing his future individualization are available. More than one beneficiary and substitute beneficiaries may be designated. If the beneficiary does not exist, does not accept, or renounces, the beneficiary will be the trustee, and in the absence of the latter, the trustee will be the trustor.
- Trustee: the person who receives the trust property once the trust has been extinguished due to the fulfillment of the term or condition.
Who is empowered to act as trustees?
Legal entities are constituted in accordance with the laws, with the exclusive purpose of acting as trustees. These companies must register and report the commencement of their operations to the DGII. The trust company for exclusive use, not belonging to a financial group, is under the supervision of the DGII.
Multiple Banks, Savings and Loan Associations and other financial intermediation entities are authorized for such purposes by the Monetary Board. These companies, in the exercise of their fiduciary function, are under the supervision of the Superintendence of Banks.
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