Guarantee Trust – Purchase and Sale of Real Estate

At some point we have heard or had the personal experience of buying or selling an asset, such as a real estate, let’s say an apartment or a house.

In the common scenario, a meeting with the seller is achieved, the unit in which one shows interest is visited, the terms and conditions are stipulated, which are then reflected in a contract for the purchase of the real estate; but…

  • What happens at the time of making the stipulated payments until the delivery of the letter of promise to purchase, or in the case, the cancellation of the unpaid balance of the real estate for the entire unit without requiring a bank loan?
  • What guarantees do I have as a buyer that the property will be transferred to me after paying large sums of money?
  • Who guarantees me that the seller complies with the terms and is not a victim of one of the many notorious cases of scams in real estate acquisitions or of incurring expensive legal fees to be able to defend my case in court?

One of the tools to achieve the required purpose is the guarantee trust, which is a contract entered into by public deed, where the settlor transfers the asset to the trustee, who will only deliver to the beneficiary when the conditions of the contract of escrow; which would be the receipt of funds for the purchase of the property for the seller and subsequent transfer of the property to the buyer.


Jorge Avila
Head of Fiduciary & Compliance – Partner

For more information:


March, 2021

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