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Trust What is it?

“Trust” is a contractual act where a Settlor transmits to an impartial third party (Trustee) a property or other rights for the constitution of a…


“Trust” is a contractual act where a Settlor transfers property or other rights to an impartial third party (Fiduciary) for the constitution of an autonomous estate.

A contract is made to be administered in favor of the beneficiary who could also be the trustor.

In a simplified way, this financial tool seeks to create an alliance between two parties to carry out a business or transaction.


  1. Note that it is a flexible financial instrument.
  2. It allows the fluid transfer of goods and rights as well as the administration of the same between parties that applies to different items.

Currently there are predefined structures to facilitate their creation, such as:

  • Succession
  • Warranty
  • administration
  • paid.

Real Estate Trust

Over time, the real estate sector has diversified and innovated to meet the needs of customers, who, in addition to good service, seek stability and security, as well as demand agile and reliable digital transactions. 

When we talk about a trust, people think that it is a financial alternative for the construction of houses, and they are right, because it is the best known of the trusts in the Dominican Republic; however, there are other types of trust .

The trust is based on a relationship of will and trust between the settlor and the trustee, through which the latter faithfully manages the trust assets in strict accordance with the instructions and requirements formulated by the settlor.


When Law 189-11 on the Development of the Mortgage and Market was approved, it brought with it a series of benefits that strengthen the negotiations carried out in the real estate sector.

Among the benefits of a real estate trust we can highlight the following:

  • Financial security where resources are guaranteed.
  • It adjusts to the needs of the client.
  • Lower incorporation and execution costs
  • Separation of assets (unattachable)
  • Guarantee of return on investment.
  • Tax exemption and discounts.
  • Ease of processing plans.

It should be noted that when we talk about separation of assets , we are talking about the fact that no type of creditor can affect the assets that are the object of the trust, that is, that they cannot be prosecuted for outstanding debts and other factors, nor affected by the bankruptcy of both or one of them.

Example of a real estate trust

You are the owner of a piece of land (solar) and you contribute it for the development of a real estate project. You associate with a promoter and a trust is established to make all movements transparent and safeguard the funds of the project, pre-sale, sale and payment to suppliers.

The trustee is in charge of managing the trust assets and when the object of the contract is fulfilled, that is, the end of the project, the benefits are distributed according to the instructions of the contract.


  • Facilitates the creation of projects and protection of assets.
  • Trust assets are protected against lawsuits
  • Benefit for all because it ensures that the project is carried out despite the problems of the promoter/builder. 
  • Provides confidence to buyers, suppliers and investors by escrowing payments.
  • Attracting and promoting real estate projects with a trust provides security to the agent by offering for sale a product with a higher level of purification, legal organization and transparent processes that are for the complete benefit of the client.
  • Mitigates risk, increases the transparency of all movements of the project managed by an impartial third party.

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Money Laundering Law 155-17 – Obliged Subjects.

Real estate agents are responsible for performing a “due diligence” when capturing or selling.

Working on a project with a real estate trust mitigates the risk of capturing projects financed with undeclared money, helping us to comply with the law.

In addition, the trustee in charge of the trust requires a series of forms that must be completed by the buyer, to purge it and link it to the trust.

Undoubtedly, the trust is here to stay.

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