Concept of Trust Property in Turkmenistan

BUSINESS TURKMENISTAN
Concept of Trust Property in Turkmenistan
Transfer of ownership to trust does not entail the transfer of ownership of it to the trustee.

Article 14 of the Civil Code of Turkmenistan provides for the elimination of possible barriers to doing business in various fields, the management of movable or immovable property owned by private individuals or private entrepreneurs in accordance with the laws of Turkmenistan.

The concept of trust property

Under a trust management agreement, the owner (the one party) for a specified period transfers the movable or immovable property or rights to it to the trustee (the other side) for trust management, and the other party accepts them and undertakes to manage them in the interests of the owner.

Transfer of ownership to trust does not entail the transfer of ownership of it to the trustee.

Rights and obligations of the trustee

The trustee is obliged to dispose of the trusted property on his behalf, but at the expense of the risk and expenses of the trustee of the property. At the same time, the rules apply to immovable property, according to which relations related to its romoval must be agreed with the owner.

The trustee in relations with third parties uses the powers of the owner. If the trustee, contrary to the interests of the trustee, does not show prudence, which he should show in relation to his own affairs, then he is obliged to compensate for the harm caused by this action.

Compensation of expenses related to trust management of property

The trustee does not receive remuneration from the principal for activities related to property trust, unless otherwise provided by agreement of the parties.

All costs associated with trust management of the property are borne by the owner.

The profits of the property belong to the owner of the property.

Property trust agreement form

A trust management agreement is concluded in writing.

If the subject of the contract is real estate, then it is subject to state registration in the public register and is considered concluded from the moment of registration.

Trustee Responsibility

The trustee is responsible for the relations with third parties.

BT Legal Affairs Department