What is a business trust?

In summary, a trust is a contractual arrangement that allows trustees to hold assets (without owning them) for the benefit of the trust beneficiaries.

Most trusts are not “business trusts” – they are just used to hold assets.  In the case of “living” trusts (the type of trust most likely to be encountered in this context) assets are initially provided by a “founder”, “settlor” or “donor”, and then owned, controlled and managed by trustees in their capacities as such (not in their personal capacities), for the benefit of beneficiaries.  The trustees can, and usually do, acquire more assets for the trust thereafter, again just to hold, control or manage.   

Since the commencement of the Consumer Protection Act, it has become crucial for home sellers and estate agents to be specific, clear and honest when selling property. The Act provides that there should be no ambiguity or uncertainty when goods or services, including property, are advertised or promoted. Considering the abovementioned, attention should specifically be given to the issue of fixtures and fittings.