People often use the terms trust agent and interchangeable agent, but even if they have similarities, they are not the same. Directors and trustees hold money or other assets in an account or trust until they are informed of the distribution. A trustee is not invalidated by the death of a depositor prior to the completion of the trust`s status. The parties may replace another custodian for the same purpose. A replacement custodian is bound by the terms of the original contract. If the custodian wrongly provides the purpose of the trust to a third party, the person who is entitled to the property can maintain legal action against the third party without joining the agent or the depositor. Title Guarantee Act – Trust Co., 91 Cal. About 621 (Cal. Around 1928).
They must provide information to both parties and the lender concerned and expressly follow the instructions of the trust agreement. It`s taken very seriously. Agents who violate this fiduciary responsibility may be held liable for any loss, revoke their certificates and have civil consequences. In short, if the agent is a business or an individual, the purpose they serve is that of a neutral and trustworthy third party for transactions in which people who never meet can participate. (4) Aggregate accounting required: all service providers are required to apply the aggregate accounting method when analyzing fiduciary accounts. In its motion for summary judgment, which was accepted by the Tribunal, TATCO argued that its fiduciary duty was limited to the performance of the terms of the real estate contract and the trust agreement and the disclosure of the actual knowledge of a fraudulent scheme directed against Home Loan. Because of these limited obligations, TATCO considered that it was not necessary to disclose the seller`s request for financing, as TATCO had to remain impartial without favouring either party. In addition, TATCO stated that it was not required to report the cases of other parties in police or suspicious circumstances, unless it was actually aware of fraudulent plans. Finally, the application and actual payment of the funds to the principal mortgage lender took place after the home loan released funds and therefore could not, according to TATCO, have caused damage to the home loan. Trust contracts provide security by delegating an asset to a director for retention until each party fulfills its contractual obligations.