The BUYER places the funds for the purchase of a real estate in a Bank Trust and/or the SELLER entrusts the real estate registration to the Bank, so that the Bank can manage and act according to the stipulations of both the real estate Purchase/Sales contract and the Trust. This allows both Buyer and Seller to complete the real estate transaction as per the agreed contract.

Trust property is a separate legal entity for the safe-keeping of assets. Once the Buyer and Seller have placed either the funds or the real estate itself into a Trust, these then become the property of the Trust and are dealt with according to Trust law. Trust property cannot be handled by force, which ensures the safe completion of the real estate transaction.

• Buyer’s risk: Having already paid the purchase price to the seller, can then not take possession of the real estate.

  Solution: The Buyer places the funds for purchasing the real estate into a Bank Trust. This allows the Bank to act according to the Purchase/Sales contract, so that the Bank will only release funds to the Seller once the Seller has transferred ownership to the Buyer or to the Bank Trust, in which case the Bank will transfer ownership to the Buyer.

• Seller’s risk: Having already transferred real estate ownership to the Buyer, the Buyer then delays payment or does not make final payment(s) as per the Agreement.

  Solution: Before transferring ownership to the Buyer, the Seller requests the Buyer to entrust the funds required for purchase to the Bank. The Seller can ensure that the funds have been placed in the trust of the Bank before completing procedures for the transfer of ownership to the Buyer. Or the Seller may, at the same time as the Buyer entrusts the Bank with the required funds, transfer registration of the real estate to the trust of the Bank, and then let the Bank complete the transfer of real estate registration to the Buyer and of Funds to the Seller according to the Agreement signed by the two parties.

• Buyer and Seller sign a Sales and Purchase Agreement.
• Buyer and Seller sign a Trust Deed with the Bank.
• As per the terms of the Sales and Purchase contract, the Buyer pays all or a part of the required funds to the Bank’s Trust.
• The Seller entrusts the real estate registration to the Bank.