The trust (sometimes known as a simple agent) is the rightful owner whose name is registered in the land registry. The beneficiaries of the trust are the actual beneficiaries for whom the property is fiduciary in nature. In Scotland, the property is generally fully owned (often referred to as the “heritage title”); The heretical title is similar to that of title deeds in England and Wales. As a result, Scottish laws generally do not recognize the distinct notions of economic property (or interest) of a heresy title. An isolated owner of a property may require that his partner (either a spouse, life partner or roommate) have a share of the benefits of the property, although he has no legal interest in the property. The granting of economic interest to a partner who is not the rightful owner allows that partner to obtain a share of the financial value of the land, such as rental income or the proceeds of the sale. Tenants in a common agreement determine the interest of each economic beneficiary, either for all benefits or for individual benefits. The rightful owner and owner of the land may be the same person, but not necessarily. In particular, legal and economic property are separated when two persons decide to manage the property through a trust: the rightful owner – whose name is registered in the land registry – holds the property “with confidence” for the property of another person, the economic beneficiary. We say that the rightful owner is the “cash trustee,” while the economic beneficiary is the “beneficiary.” Profits or benefits of real estate arising from the terms of a trust agreement. Regardless of the agency relationship, the case law has upheld the “sealed contract” rule that allows an undisclosed client to be protected from liability when a mere agent or nominee enters into a contract under the seal, such as. B a mortgage on real estate, which is considered a sealed contract under the Land Registry Act1. For this reason, it is essential that an agreement of the actual beneficiaries be included in the security package when an asset is held in trust by a candidate or agent for third-party beneficiaries.
The beneficial interest is an interest in the economic benefits of a property. It belongs to the economic beneficiary who is right regardless of the ownership entries into the land registry, who is entitled to the financial value of the land. By default, the advantage is rehabilitated according to the shares of the legal interest. If an owner has a legal interest in three-quarters of the property, he has an economic interest in three-quarters of the benefits of the property. While the right-to-sale contract or any other agreement that establishes a contractual relationship with the actual beneficiaries is important to the client`s personal commitment, it is not strictly necessary to charge the value of the building, provided the royalty has been duly approved. In some cases, a lender may even agree to limit the liability of actual beneficiaries and limit the use of assets alone. There are two types of property: legal or economic property. We tend to think of legitimate owners as the actual beneficiaries and therefore do not distinguish between the two, but sometimes it is helpful to do so. However, property owners may wish economic interests to differ from legal interests, especially if they wish to be entitled to a larger share of rental income. For example, if A and B are the common rightful owners of a property, they may decide that A holds an economic share of 70% of the property and that B holds an economic share of 30% of the property. This entitles A to 70% of the rent, while B is entitled to 30%.