Property Management

If the object is a real estate asset management, the contract shall be in the form required for a contract of sale of immovable property (paragraph 1 of Section 2, Art. 1017 Civil Code). This means that the contract of trust management of real estate must be enclosed in a simple writing by drawing a single document signed by the parties (Art. 550 CC RF). In this case the transfer of real property in trust subject to state registration in the same order as the transition rights to this property. (Paragraph 2 of subsection 2 of Art. 1017 Civil Code).

A contract of trust management of property is among the few instruments for which the legislator clearly indicates the significant conditions, without observing that he did not is concluded. The first such condition is an indication of the property transferred in trust. The second condition is the nomination of a citizen or a legal person, in the interests of which manages the property. This person may be a parent control, and any other person (the beneficiary). The Trustee may not be a beneficiary under a contract of trust Property Management (Clause 3, Article. 1015 Civil Code), as the meaning of the contract on trust management is that the manager does not act as trustee for its own interests, but in the interests of another person. As a general rule, the asset management business is, therefore, the contract specifies the size and form of compensation manager.

If the manager acts on the basis of grants given condition is not met. And finally, one of the essential terms of the agreement on trust management is the term of this contract. As conceived by the legislator that can with reasonable certainty exclude the possibility of covering the agreement on trust management of the actual transfer of property ownership to another person. In addition, it gives some stability to the parties of the contract. The maximum period for which shall be entered into a contract on trust management, is five years. Even if the text of the agreement specify a period longer than 5 years, it will still be concluded for five years. However, the trust property for certain kinds of property law may provide for other deadlines. But if after the expiration of the contract, neither party does not declare the termination of the contract, he deemed to be extended for the same period and under the same conditions as were provided by the contract (Section 2, Art. 1016 Civil Code).