When you make an investment in real estate, an option to purchase or purchase of assets, or if you lend money to someone, or simply wish to have an assurance that your investment will be recovered promptly and safely, a Guarantee Trust is your best choice in terms of security and simplicity for collection.
In a Guarantee Trust, ownership of the assets you are given as collateral for a transaction is transferred to Global Trust Firm as trust property. In turn, such assets will be returned to the debtor once the debt is paid in accordance with the loan agreement. Otherwise, they will be sold in order to pay you, or eventually will be transferred on your name so you may recover your investment. This way you will avoid being involved in time-consuming, costly legal proceedings and instead will obtain dramatically faster response times than you would in court. Please consider the following: In a mortgage arrangement, your debtor will pay roughly 3.5% as organization expenses, whereas in a Guarantee Trust these expenses will not exceed 1 % (*). Furthermore, if your client were to become in arrears on the payments, the mortgage foreclosure proceeding may last up to one year, while in the Guarantee Trust it may last only ONE MONTH. In addition, in the foreclosure proceeding the lawyer's fees and proceedings will add to a minimum of 13%, whereas in the Guarantee Trust they will only add to 6.25%.
The time of recovery of your collateral is not the only benefit of a Guarantee trust. In Costa Rica , the law provides that transferring assets in a trust does not involve any transfer taxes, registration charges, or other tax stamps or tributes. Furthermore, the sums of money stated in the documents do not increase property value for the purposes of real estate taxes.
All of the above makes a GUARANTEE TRUSTa more cost-effective alternative. Moreover, you will be in true control of the collateral in the operations on your favor. Meanwhile, the debtor will benefit considerably in terms of cutting costs, as this arrangement will spare him from resorting to pricey mortgages and sureties. In short, all of these advantages will translate into prompter, safer, and more cost-effective loans for you and your clients.
SERVICES:
With regard to Guarantee Trusts, Global Trust Firm may offer the following:
• Fiduciary services. The assets committed as collateral for an operation are received as trust property, regardless of their nature as movables (i.e. stock, securities, bonds, vehicles), or real estate (properties, condominiums.)
* Safe custody of moveable documents to safety boxes.
• Creation of a Guarantee Trust for a price of over 30% less than the price of a regular mortgage.
* Recovery of your collateral will require only 10% of the time and cost 50% of the price of a regular foreclosure on a mortgage.
• Advice on the writing of trust agreements. Notarization of documents transferring the assets to include them and remove them from the Guarantee Trust (*)
(*) Such notarization services are not included in the fees for fiduciary services. The Notary's fees should be covered by the debtor separately, at the time of formalization, and usually amount to 1,5 %. It is not required to hire the services of Global Trust Firm's Notaries when writing the documents. However, all documents written by notaries not related to Global Trust Firm should be previously reviewed and approved by our Firm.
