Agreement on trust management of real estate (apartment)

Under a property trust management agreement, one party (the management founder) transfers property into trust management for a certain period of time to the other party (the trustee), and the other party undertakes to manage this property in the interests of the management founder or the person specified by him (the beneficiary) (Article 1012 of the Civil Code RF).

Download a sample trust agreement here or at the end of the page.

Sample trust agreement

g. ________________ “__”___________ ____ g.

_____________________________________________, hereinafter referred to as the "Management Founder", represented by _______________________, acting___ on the basis of _________________ ____________________________, on the one hand, and ___________________________________, hereinafter referred to as the "Trustee", represented by _______________________, acting___ on the basis of _________________________________________________________, on the other hand, jointly referred to The “Parties” have entered into this Agreement as follows:

Subject of the agreement

1.1. The management founder transfers the property for trust management to the Trustee for the period established in this Agreement, and the Trustee undertakes to manage this property in the interests of the management founder (option: in the interests of __________________________________________________________).

1.2. The object of trust management is ________________________________ _______________________ ______________, hereinafter referred to as “Property”.

1.3. The property belongs to ____________________ by right of ownership, which is confirmed by ____ ___________________________________________ dated “_”_____ __, N __, issued by _________ ____________________________.

1.4. The transfer of Property into trust management does not entail the transfer of ownership of it to the Trustee.

1.5. The property transferred into trust management is not encumbered (option: encumbered) with collateral.

Option for transferring real estate to trust management:

1.6. The transfer of Property into trust management is subject to state registration in the manner established by the current legislation of the Russian Federation. The costs of transferring the Property into trust management and state registration of this Agreement are borne by ______________________.

Essential terms of the agreement

The first sheet of the property trust management agreement Unlike many other categories of civil law transactions, the trust management agreement is characterized by several essential conditions directly regulated by civil law. The list of such conditions is formed in Article 1016 of the Civil Code of the Russian Federation:

The composition of property objects in respect of which a management agreement is concluded;
Data of the individual or organization in whose interests the management is carried out;
The procedure for determining the amount of remuneration, as well as its form, if the decision to pay such remuneration is included by the parties in the text of the agreement;
Contract duration.

Expert opinion

Kurtov Mikhail Sergeevich

Practitioner lawyer with 15 years of experience. Specializes in civil and family law. Author of dozens of articles on legal topics.

Important! The law regulates the deadline for which a property asset management agreement can be concluded. It lasts five years, and for certain categories of property it can be established by additional regulations.

However, the expiration of the contract does not always mean the termination of the trust management relationship. If neither party declares termination of the contract, it will be considered renewed for the same period and on similar terms as the original agreement.

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The inclusion of these essential provisions is not a right, but an obligation of the parties. An exception is allowed only in relation to the manager's remuneration - if the parties have not provided for such a condition in the agreement, there is no need to indicate the amount and form of remuneration.

All essential terms of this type of agreement must be agreed upon by the parties before signing it. If there is no agreement between the parties on all essential terms, the contract cannot be concluded.

Rights and obligations of the parties

3.1. The founder of the management has the right:

3.1.1. Check the execution of the Agreement by the Trustee.

3.1.2. Exercise control over the actions of the Trustee by inspecting the Property transferred to trust management and becoming familiar with the balance sheet maintained by the Trustee.

3.1.3. Receive all information and reports submitted by the Trustee to state regulatory authorities in accordance with the current legislation of the Russian Federation.

Option if the Management Founder is a beneficiary under the Agreement:

3.1.4. Receive income from the Property transferred for management minus the amounts payable to the Trustee in the form of remuneration and compensation for expenses for trust management.

3.2. The founder of the management is obliged:

3.2.1. Transfer to the Trustee the Property, as well as all documents and information necessary to fulfill the obligations and exercise the rights under this Agreement.

3.2.2. Pay the Trustee remuneration in accordance with Art. 4 of this Agreement.

3.2.3. After termination of this Agreement, accept the Property returned by the Trustee in the manner established by this Agreement.

3.3. The trustee has the right:

3.3.1. Carry out transactions on his own behalf with the Property transferred for management, indicating that he acts as a Trustee by marking in written documents after the name or designation of the Trustee “D.U.”

3.3.2. Exercise , within the limits provided by law and this Agreement, the powers of the owner in relation to the Property transferred to trust management. The Trustee may dispose of the Property only with the prior written consent of the Management Founder in the following cases:

____________________________________________________________.
____________________________________________________________.
____________________________________________________________.

3.3.3. The rights acquired by the Trustee as a result of actions to manage the Property are included in the composition of this Property. The obligations arising as a result of such actions of the Trustee are fulfilled at the expense of this Property.

3.3.4. To protect the rights to the Property under trust management, the Trustee has the right to demand the elimination of any violation of his rights in accordance with the civil legislation of the Russian Federation.

3.3.5. Instruct another person to perform on behalf of the Trustee the actions necessary to manage the Property with the written consent of the Management Founder or if the Trustee is forced to do so due to circumstances to ensure the interests of the Management Founder (or _______________________________________) and does not have

the opportunity to receive instructions from the Founder of the Management within a reasonable time. The trustee is responsible for the actions of his chosen attorney as if they were his own.

3.4. The trustee is obliged

3.4.1. Separate the Property received by him for trust management or acquired by him at the expense of the funds of the Management Founder from other property of the Management Founder and from his own property. This Property is reflected by the Trustee on a separate balance sheet, and independent accounting is maintained for it.

3.4.2. Open a separate bank account for making payments for activities related to the trust management of the Property.

3.4.3. Within _____ days after the end of ___________________________, submit a report on your activities to the Founder of the management (Appendix N _____).

The report will be considered accepted if, within _____ days, the Management Founder does not send the Trustee his objections to the report in writing.

3.4.4. Transfer to the Management Founder (option: ________________________________ ___________________________________) all benefits and income received from the trust management of the Property, with the exception of funds aimed at covering expenses associated with trust management, (Sample trust management agreement), taxes, as well as other payments and expenses provided for this Agreement.

Income received from the management of the Property, as well as expenses incurred by the Trustee during the execution of this Agreement, are taken into account by him on a separate balance sheet and are indicated in the report submitted to the Management Founder.

If the amount of income received from the management of the Property exceeds the expenses incurred in connection with this, the Trustee is obliged to transfer the resulting difference to the Founder of the management (option: _____________________________________________).

The amounts of the above difference must be transferred by the Trustee to the settlement account of the Management Founder specified in Art. 9 of this Agreement (option: to the current account ___________________________ ___________________________________________________ using the following details: _____________________________________________________________________).

3.4.5. Ensure the safety of the Property under trust management.

Procedure for transfer and return of property

4.1. Within _____ (__________) days from the date of conclusion of this Agreement, the Management Founder transfers the Property to the Trustee.

4.2. The transfer of the Property is carried out according to the Property Acceptance and Transfer Certificate , which is an integral part of this Agreement (Appendix No. ___).

4.3. In the event of early termination or termination of this Agreement, the Trustee shall return the Property under trust management within _____ days from the date of expiration of the Agreement.

4.4. The return of the Property is also carried out according to the Property Return Certificate, which is drawn up by the Trustee within the period established by clause 4.3 of this Agreement.

Usual terms of the Movable Property Trust Management Agreement (standard form):

(conditions that the parties, in order to prevent possible risks and disagreements, by virtue of the right granted by law and (or) business customs, independently determine in the Movable Property Trust Management Agreement):

procedure for acceptance and transfer of movable property under the Transfer and Acceptance Certificate;

for the Founder, who is an individual - a guarantee of the absence of marital relations or registration of the necessary consent of the spouse to transfer the common property of the spouses to trust management in accordance with the presented form;

the procedure for transferring movable property to third parties, at the initiative of the Manager;

expenses incurred by the Manager during the trust management of movable property (for example, payments for the maintenance of movable property, communications, etc.) are reimbursed depending on the choice of the user at the expense of the beneficiary or at the expense of the entrusted property or income from its use;

when reimbursing the above expenses, the contract also regulates the expense limit, beyond which reimbursement of expenses is made only after obtaining the consent of the beneficiary;

the amount and form of the Manager’s remuneration, if the user selects the answer option that provides for its payment (for a fee);

the procedure for payment by the Managers to the Beneficiary of net income from trust management;

procedure for acceptance and transfer of services provided;

liability of the parties;

settlement of disputes;

procedure for changing or terminating the contract;

procedure for termination of the contract;

other conditions that the parties, by virtue of the law granted by law and (or) business customs, and (or) agreement of the parties, can independently determine in the contract.

If a party to the contract is an individual, including an individual entrepreneur, then, by virtue of the Law “On Personal Data and Their Protection,” it is necessary to request “Consent to the collection and processing of personal data” from this party.

Trustee's remuneration

5.1. The amount of the Trustee's remuneration under this Agreement is _____% of the income received as a result of trust management, and is paid within _____ (__________) business days from the date of approval of the relevant report.

5.2. The Trustee has the right to full reimbursement of necessary expenses incurred by him related to the management of the Property from the income from the use of this Property.

Parties to the agreement

The following persons have the right to act as a founder of management on the territory of Russia:

Property owner
Guardianship and trusteeship authority
Persons provided for by legislative acts.

The following have the right to perform the duties of a trustee:

Individual entrepreneur,
Commercial organization,
Individual,
Non-profit organization.

Important!

A unitary enterprise, a state body and a municipality cannot act as a trustee.

Responsibility of the parties

6.1. The Trustee, who did not show due care for the interests of the Management Founder during the trust management of the Property (or: ________________________________________________), compensates Management Founder for losses caused by loss or damage to the Property, taking into account its natural wear and tear, as well as lost profits (option: a - _________________________________________________ - lost benefit during trust management of the Property).

The Trustee is liable for losses caused unless he proves that these losses occurred as a result of force majeure or the actions of the Management Founder (or __________________________________ _____________________________________________).

6.2. Obligations under a transaction made by the Trustee in excess of the powers granted to him or in violation of the restrictions established for him are borne by the Trustee personally. If third parties participating in the transaction did not know and should not have known about the excess of authority or about the established restrictions, the resulting obligations are subject to fulfillment in the manner established by clause 6.3 of this Agreement. In this case, the management founder may demand from the Trustee compensation for losses incurred by him.

6.3. Debts under obligations arising in connection with the trust management of the Property are repaid at the expense of this Property. In the event of insufficiency of this Property, foreclosure may be directed to the Property of the Trustee, and in case of insufficiency of his Property, to the property of the Management Founder that has not been transferred to trust management.

6.4. Foreclosure of the debts of the Management Founder on the Property transferred by him to trust management is not permitted, except for the insolvency (bankruptcy) of the Management Founder. In the event of bankruptcy of the Management Founder, the trust management of the Property is terminated and it is included in the bankruptcy estate.

About the agreement

The trust management agreement regulates the relationship between the management founder and the trustee. The subject of the agreement is the transfer of the object into trust management for the time period agreed upon in the contract. By signing the agreement, the trustee undertakes to manage the object in the interests of the management founder (beneficiary).

The beneficiary is appointed by the founder of the management. In a trust agreement, any entity of the Russian State Enterprise, in addition to the trustee, has the right to act as a beneficiary.

The essential terms of this agreement are:

Details of the organization or full name. management founder (beneficiary);
Details of the organization or full name. trustee;
List of objects provided for trust management;
The period during which this agreement is valid;
The volume and type of financial payments that are provided to the manager as remuneration for conscientious management of the property (relevant if the remuneration is specified in the agreement).

Important!

An object entrusted to trust management is not the property of the manager. All actions performed by the manager regarding the object entrusted to him must be reflected in the report on the manager’s actions. This report must be transferred to the beneficiary within the time period specified in the agreement.

Force Majeure

7.1. The Parties are released from liability for partial or complete failure to fulfill obligations under the Agreement if this failure was a consequence of force majeure circumstances that arose after the conclusion of the Agreement as a result of extraordinary circumstances, such as flood, fire, earthquake and other natural phenomena, as well as war, military actions, blockade, prohibitive actions of authorities and acts of state bodies, embargoes that arose during the validity of the Treaty, which the Parties could not foresee or prevent by reasonable measures.

7.2. If the circumstances specified in clause 7.1 of this Agreement occur, each Party must immediately notify the other Party about them in writing. The notice must contain information about the nature of the circumstances, as well as official documents certifying the existence of these circumstances and, if possible, assessing their impact on the Party’s ability to fulfill its obligations under this Agreement.

7.3. If the Party does not send or untimely sends the notice provided for in clause 7.2 of this Agreement, it is obliged to compensate the other Party for the losses it has incurred.

7.4. In cases of the occurrence of the circumstances provided for in clause 7.1 of this Agreement, the period for the Party to fulfill its obligations under the Agreement is postponed in proportion to the time during which these circumstances and their consequences apply.

7.5. If force majeure circumstances and their consequences continue to apply for more than _____________ consecutive months, the Parties shall conduct additional negotiations to identify acceptable alternative ways of fulfilling the Agreement (option: each of the Parties has the right to terminate this Agreement unilaterally).

Change and termination of the contract

8.1. This Agreement is terminated due to (select the appropriate one):

death of _____________________ or liquidation of _____________________ (the agreement may provide otherwise);
refusal __________________________________ to receive benefits under the Agreement (the agreement may provide otherwise);
death of a citizen who is a Trustee , recognition of him as incapacitated, partially incapacitated or missing, as well as recognition of an individual entrepreneur as insolvent (bankrupt);
refusal of the Trustee or the Management Founder to carry out trust management due to the inability of the Trustee to personally carry out trust management of the Property;
refusal of the Management Founder from the Agreement for other reasons, subject to payment to the Trustee of the remuneration stipulated by the Agreement;
recognition as insolvent (bankrupt) of a citizen-entrepreneur who is the Founder of the management.

8.2. If one Party refuses this Agreement, the other Party must be notified of this three months before termination of the Agreement (the Agreement may provide for a different notification period).

8.3. In the event of termination of the Agreement, regardless of the grounds for its termination, the Property held in trust must be returned to the Management Founder in the manner prescribed by clause 4.4 of this Agreement.

8.4. This Agreement may be terminated early by agreement of the Parties, as well as unilaterally on the grounds established by the current legislation of the Russian Federation.

8.5. All changes and additions to the Agreement are valid if made in writing and signed by duly authorized representatives of the Parties. The corresponding additional agreements of the Parties are an integral part of the Agreement (option: and are subject to state registration in the manner prescribed by the civil legislation of the Russian Federation).

All notices and communications under the Agreement must be sent by the Parties to each other in writing.

Final provisions

10.1. This Agreement comes into force from the moment it is signed by the Parties (option: from the moment of state registration of the transfer of the Property into trust management) and is valid for the period specified in clause 2.1 of this Agreement.

10.2. For all other issues not regulated by this Agreement, the Parties will be guided by the current legislation of the Russian Federation.

10.3. This Agreement has been drawn up in ____ copies , one of which is kept by the Founder of the management, the second by the Trustee (option: and the third – by the body that carries out state registration of rights to real estate and transactions with it).

10.4. The integral parts of this Agreement are the following appendices (select the one you need):

10.4.1. Appendix N ___ - copies of title documents for the Property transferred to trust management;

10.4.2. Appendix N ___ - copies of cadastral and technical passports for the Property transferred to trust management;

10.4.3. Appendix N ___ - Certificate of acceptance and transfer of Property (after its signing by the Parties);

10.4.4. Appendix N ___ - Certificate of return of the Property (after it is signed by the Parties);

10.4.5. Appendix N ___ - Trustee's Report.

Addresses and payment details are filled in at the end of the agreement on the last page. Where the name of legal entities, location, TIN/KPP, OGRN, etc. are indicated.

Essential terms of the Movable Property Trust Management Agreement (standard form):

(conditions without which, by virtue of legal requirements, the Movable Property Trust Management Agreement is not considered concluded):

compliance with the established form of the contract, i.e. its conclusion in writing, its signing by the parties or their representatives and, as a rule, if the transaction is carried out by legal entities and (or) individual entrepreneurs, sealed, if this person, in accordance with the legislation of the Republic of Kazakhstan, must have a seal.

condition on the subject of the contract, i.e. data allowing to establish which movable property is subject to transfer to trust management, indicating its identification characteristics;

term of trust management;

composition of the property transferred to trust management, i.e. characteristics and description of movable property;

indication of the beneficiary;

deadline and form of the Manager’s reporting;

an indication of the person receiving the entrusted property in the event of termination of the Movable Property Trust Management Agreement (standard form);

information about the presence or absence of rights of third parties to movable property (encumbrances and (or) restrictions) and, if there are rights of third parties, execution of the necessary consents in accordance with the forms provided.