Trusts and Guarantees in Real Estate
Objectives
- Explain the Costa Rican fideicomiso
- Compare trusts with mortgages
- Describe roles of trustor, trustee and beneficiary
Explanation
The Costa Rican trust (fideicomiso), regulated by the Commercial Code, transfers assets to a trustee for a specific purpose. Guarantee trusts (fideicomisos de garantía) are common in real estate financing as an alternative to mortgages. Roles: trustor/settlor (fideicomitente), trustee (fiduciario), beneficiary (fideicomisario). Note: it differs from the Anglo-American trust, which separates legal and equitable title.
trustor / settlor
The person who transfers assets into a trust (fideicomitente).
“The developer is the trustor.”
trustee
The entity holding and managing trust assets (fiduciario).
“A bank acts as trustee.”
beneficiary
The person who benefits from the trust (fideicomisario).
“The lender is the first-place beneficiary.”
guarantee trust
A trust securing payment of an obligation.
“The loan is secured by a guarantee trust.”
foreclosure
Enforcement of security after default.
“The trust allows faster enforcement than foreclosure.”