Fair Oak Trustees takeover of Title Trustees
Fair Oak Trustees takeover of Title Trustees
Fair Oak Trustees takeover of Title Trustees. What does this mean for the industry when such a move is planned?
We look into the news with a fine-toothed comb. So, who is Title Trustees and who is Fair Oak Trustee? Title Trustees was set up for the ever-expanding Asian property market. Set up in 2009 and incorporated a year later, Title Trustees is a trading partner of the world renowned and respected service of Hutchinson & Co Trust Limited. Of course, any one knows Hutchinson. Incorporated in 1981 and fast established as one of globe’s most successful companies to secure property assets. Hutchinson pioneered asset and property management across the whole of Europe in the boom years of the 90’s.
So, what is role of a ‘trust’ in the property sector?
A trust is an arrangement in which one party holds property for the benefit of a third
party, usually the investor (or subscriber) termed as the beneficiary. Trusts are vital for
the success and credibility of the latest style of investment platforms containing multiple
investors such as crowd funds.
- Tax Advantages.
- Keeps the property assets and cash out of the hands of the owners of the investment platform.
- A Trust is legally bound to operate in the best interests of the beneficiary.
- A Trustee possess special knowledge about the investment allowing the beneficiaries to be ignorant of such matters and still be safe to invest.
- A Trustee will full fill the terms of trust and ensure the property and the cash flow generated by the property asset will be given to the beneficiary.
What about Fair Oak Trustees?
Well they seem to be backed by the same powerhouses in the industry that sent Hutchinson to the height it is today. What do these companies propose in general to achieve for providing the ultimate in security for real estate investors and vacation property users?
Firstly, it seems that Fair Oak doesn’t deal with off plan or pre-construction investment platforms. Only when the property platform is built, running, returning income as operational then Fair Oak may consider a trust service. Also, Trusts with less resources do not address the fact that clients are at risk twice when they make an
investment. Firstly, when the client makes the capital investment, and then of course when it comes to liquidating the asset once the fund matures.
Fair Oak seems to first secure the deeds to the properties. By default, clients are
assured the asset be free of encumbrance or debt. The purchaser no longer needs to
trust the management of the product or marketing company. The property asset is paid
for, cannot be remortgaged or sold while the deeds are secured by the trustee.
What about management of the properties and management/disbursement of the rental income?
Fair Oak will bill a fixed agreed management fee that doesn’t just buy a trustee service,
it buys expertise. This will cover the cost of property acquisition services, management,
advertising, rental tenants and payments. And of course, dealing with disbursing the
rental income in relevant cases.
What happens to securing the investors funds at the point of sale?
The only way to police all the sales agents is to commit to a joint venture agreement with the product company and allow a trustee to set individual checks and balances within the sales agent’s organization past the point of sale. So, for example, with Realty International a client of Fair Oak. Clients will pay into a separate client account under the trustees control. These funds are inaccessible to the staff of the sales company after the point of sale. These funds are then sent directly to the client’s escrow account in trust with Fair Oak. We will have received a copy of the client’s purchase proposal to reconcile the exact amount paid. Once due diligence on the sales sequence has been approved, the client will receive his deed to that exact net amount held in escrow. Only then, once the client confirms receipt of the deed exactly as expected does the product company have the capital released from escrow. So, past the point of sale the capital and asset are secured. That’s what taking the risk out of purchasing means.
When it’s time for property assets to be liquidated, trustees freeze all current and future sales. Property assets are valued, sold in the most profitable way for the investor and the total sales funds along will be equally distributed to the investor. This is the job of a Trustee. It’s what property or land based sales companies pay management fees to Trustees for.
So, in summary it seems that Fair Oak is bringing to the table a complete package where the public can “invest and forget” with total management of the funds and its cash flow. Many times, we receive emails asking, how do we know if we can trust what our IFA? Or, how do we know when it’s time to get our return? With Fair Oak, the answer is simple…YOU DON’T NEED TO! Fair Oak secures parent companies assets.
Polices the cash flow and ensures payments upon maturity. Sure, its costs money to make money and Fair Oak charge. But what price do you put on a guarantee of a return? And to free yourself from the worry of purchasing? Fair Oak make purchasing safe enough to be excited about the mid to long term prospect of securing your future and leaving a legacy for your children. To everyone here it would seem the perfect set up for the new and high net worth purchaser alike. As is heard often in the property market, “you just can’t buy that kind of experience”. Well now you can, consult Fair Oak Trustee’s for your overseas property management and for a fixed cost you’ll be buying a winning combination of resources that will enable the purchaser to become involved and simply walk away without fear or trepidation.
As a final note, we see that other countries lobbying for legislation to make this kind of transparency and experience a legal requirement for all similar companies to prove to all purchasers and sellers alike. Until that time, the gold standard will remain, a British Trustee with a British bank and a UK registered investment company. Some funds / accounts do not qualify for yearly rental yield dividends. Please consult your local qualified advisor.
*Some funds / accounts do not qualify for yearly rental yield dividends. Please consult your local qualified independent financial advisor.
Visit there website website: www.fairoaktrustee.com