Chang v Lee`s naked facts can be summed up as follows: Ms. Lee acquires a property in Sunnynook Mr. Chang (Mrs. Lee`s uncle) advances $275,000 of the purchase price of $566,000. Read more → A buyer`s main concerns when dealing with a trust in connection with a share purchase are: Buy or sell: Directors must have the power to buy or sell real estate in the name of the trust. The powers of the trustees will be found in the trust deeds or, in the case of a will, in the deceased`s will. This trust decision-making power is signed by the first agents when the trust is set up and the directors are limited to the powers defined in it. An agent must request a copy of the trust deed to determine whether the agent who signed the agreement is entitled to do so. If the trust deed does not provide the agent with that purchasing or selling power, the carrier cannot continue the transfer, as a means of transportation must inspect and confirm that the agent had the authority to purchase or sell the property. The Court of Appeal`s decision in Cowan/Martin emphasizes the need to clearly identify when the parties act as agents or agents. While, in this case, the Agency`s argument may seem a little sophisticated and is only available because of the cohabitation between capacity and the parties, the case remains instructive.
Lessons… Read more → This case involved the sale of a couple in possession of the family trust. The couple and a third independent agent were agents of the family trustee and were registered as registered owners of the estate. The property was listed with the contract and knowledge of the three agents for sale with a real estate agent. After listing the property, the couple and a buyer signed a sales contract. The purchaser stated that he had been informed by the agent that the couple had the power to bind the independent agent. When the agreement was submitted for signature by the independent agent, he refused to sign the agreement on the grounds that he believed that the price offered was less than the market value of the property. If the agent violates the agreement, the purchaser is able to assert his or her rights under the sales contract and other documents on the assets of the underlying trust Two persons or more: A spouse or common-law partner is not authorized to sign the agreement for the other spouse or partner, unless a person has appointed the other person as that person`s agent.