Día Internacional de la Mujer – 2023
08/03/2023Present at the AmCham Legislation and Tax Committee
22/03/2023Its Features and Advantages
By: Estefanía Alemán – General Manager at Icaza Trust Corporation
The purpose of a Real Estate Development Trust is the management of resources and assets pertaining to a real estate development project. The Real Estate Development Trust may have different modalities, and may or may not also operate as a warranty trust.
The modalities of the Real Estate Development Trust can be categorized as follows:
- Management, Warranty, and Source of Payment: the purpose of the trust is to hold as part of its patrimony the property on which the real estate project is developed, manage the financing resources, receive payments for the pre-sales and sales of the project, manage the entire flow of the project and pay its direct and indirect costs, secure the financing with all the assets that make up the trust patrimony, release and transfer the real estate units once they are ready, repay the financing, and distribute the earnings to the developer or partners of the project as appropriate.
- Pre-sales Management: the purpose of the trust is limited to collecting the funds from pre-sales as long as the necessary conditions are met to carry out the real estate project.
- Financing Management: the purpose of the trust is limited to managing the funds from the financing and transferring them to the developer, according to the project’s budget and the inspector’s reports on the progress of the works.
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