Use of Trusts in Real Estate Projects
The trust regulated by the General Law of Credit Instruments and Operations is a key tool in real estate projects. Through this figure, the trustor transfers assets to a trustee, who administers them for the benefit of the investors or buyers, in their capacity as trustees. This structure offers legal security, facilitates the administration of resources and ensures the fulfillment of specific objectives, such as the delivery of real estate or the return of capital.
In the real estate field, the trust regulates the distribution of resources and facilitates the sale and purchase of real estate under a transparent and controlled scheme. In Mexican law, the trust contract establishes the duties and obligations of the trustee, such as ensuring proper management and protecting the rights of the beneficiaries, which reduces the risks of mismanagement of funds.
It is relevant to mention that the legal framework applicable to real estate trusts may vary according to the specific nature of the trust, its structure and the goods or assets it manages; providing certainty to both developers and investors, promoting the success of real estate projects.
The trust’s capacity to guarantee the correct administration of resources, comply with tax obligations and ensure transparency in operations makes it a reliable and efficient mechanism. At ECIJA Mexico, we accompany our clients in the correct implementation of the applicable regulations, helping them to make assertive decisions, while protecting their interests.
ECIJA Mexico
socios.mexico@ecija.com
+52 55 5662 6840
www.ecija.com
