Basic Information regarding Real Estate Trust Agreement Forms
What is meant by Real Estate Trust Agreement Forms?
It is a formal agreement which a trustee uses to vest ownership rights (i.e. title) to different assets. Trust agreements forms pertaining to real estate require exact descriptions and trustee’s written consent so that the trust can be deemed valid.
Real Estate Trust Agreement Forms’ structure-
- The title of form is Trust Agreement.
- The date on which the agreement is being drafted is mentioned and the names of the parties involved, i.e. the grantor and beneficiary are specified.
- The title- trust created will be called so and so trust agreement.
- Objectives and purpose of the trust- purpose is to be specified clearly.
- Duties and powers of trustee-
- Trustees are entitled to powers allowed by state laws governing the trust.
- Trustees have power to formulate and execute he contracts for sale or lease of Trust Property.
- Compensation of trustees- trustees will get reimbursed by Beneficiaries for expenses incurred in administration of Trust
- Liability of trustees- trustees are not liable to obligation of Trust personally.
- Trustee removal- Beneficiaries have right to remove a trustee and appoint successor.
- Resignation of trustee and the successor- a written notice stating the intention to step down can be submitted to the Beneficiaries. The beneficiaries can appoint a successor.
- Tax Returns- Return filing is not a trustee’s responsibility.
- The compensation details, beneficiary details, trust termination policy, annual statements, governing laws and binding effect are the other details specified in an agreement.