Two signed copies of the simple agent agreement (non-negotiable for the modification of the agreement). Holding a title registered on behalf of an agent can reduce the number of parties who must sign documents to complete a transaction. This is particularly useful for joint ventures with several participants. If the sole agent performs duties in addition to the duties covered by the fiduciary instrument, these tasks are considered to be performed under an agency contract or other contractual agreement with the economic beneficiary. It is advisable to advise insurers on a trust agreement and to have each trustee and the true owner as designated insured, in order to prevent insurers from rejecting a claim on the grounds that a simple agent has no „insurable interest“ in the assets covered by a policy. Therefore, when setting up a trust, one may wonder who, between the agent and the economic beneficiary, engages in commercial activity with respect to the property (provided the property is not used for tax-exempt activities). The person making the deliveries in connection with the property, if any, is the person considered to be engaged in commercial activity. While the functions of the agent may generally indicate a dominant agency relationship in a simple position of trust, it is necessary to examine the type of obligations contemplated by the trust in order to determine whether the Agency`s principles are applicable and not the principles of trust. is a term that is most often applied to it as a trust, the person who enjoys the trust, but not legal, who remains in the agent or personal representative. (Black`s Law Dictionary) Paragraphs 268 and 269 of the Act provide that the installation or distribution of the property is considered a compensation benefit equal to the amount set by the Income Tax Act when a person moves into an Intervivos Trust and the agent distributes the trust`s assets to beneficiaries.
For the purposes of the GST, when a transaction is made by the agent as an undisclosed agent, the economic beneficiary, as the principal obligatory, is responsible for collecting and transferring the tax on the delivery considered to the agent, while the agent`s liability is considered to be delivery to a third party. This article provides a very broad overview of the nature of trusts and why they are sometimes used in real estate. If you are considering buying or lending money guaranteed by real estate, please contact a member of the Houser Henry-Syron LLP team to discuss how best to structure your transaction. Lenders should check whether the right to a guarantee for a loan is registered in the name of a simple agent. An economic beneficiary may take legal action or be sued if he violates a contract entered into by a representative acting on his behalf. There is an important exception to this principle. The „sealed contract rule“ prevents an unsigned client (owner of a benefit) from being sued or sued under a sealed contract entered into by an agent (single agent). The Land Registry Reform Act considers a mortgage to be a sealed contract, whether or not it is signed under the seal.
However, a change in use may occur when the economic beneficiary of a real estate held in a single trust is engaged in tax-exempt activities and the cash trust has engaged in only commercial activity. It is relatively easy to know who is listed as a rightful landowner in Ontario.