A management-type land trust is a product through which an entrustor directly procures business expenses from financial institutions and construction companies and pays them. Although it is similar to a general land (development) trust, there is a difference in funding method. In addition, this trust is able to hedge the risk of bankruptcy or default, thereby promoting stable development of projects and preventing the risk of problems in the sale.
- 01 In the event of an entrustor’s default or bankruptcy, trust assets are managed as an independent property and stable business can be implemented since the trust company is a business operator.
- 02 A sale(lease) contract under the name of a trust company may prevent trade accidents such as duplicate contracts and the misappropriation of payments for buildings.
- 03 A management-type land trust prevents delays in construction completion and in residents’ moving-in due to unexpected disputes between contractors and developers including the prevention of a breach of contract and an unfair act and enables interested parties to pursue their rights.