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the need for registration in the Registration Public Office. Once the fiduciary rights of the trust have been assigned by the seller, the buyer can dispose of them and of the real estate that integrates the trustee under the terms of the trust agreement. It also represents a guarantee for real estate transactions, as the trust property is managed by a trust company that must fulfill the fiduciary obligations and the trust instructions of the settlor. b. Real Estate Investment Funds and Private Equity Funds: A real estate investment fund is a legal and financial vehicle (mutual fund) which mainly invests in real estate properties, in order to generate long-term income and asset valuation which become financial returns for its investors. The real estate investment funds are managed by professionals, and its investors have their investment represented in participation titles of the fund. The real estate investment funds are highly regulated by the Colombian financial authorities. c. Condominium Regime: There is a special ownership type called Condominium Regime ( Regimen de propiedad horizontal ) in which exclusive property rights over private property and co-ownership rights over common areas of the property concur, to guarantee the security and peaceful coexistence of the co-owners. This kind of ownership is very usual in the residential or commercial buildings. The main purpose of this type of property is the maintenance of the
common areas of the housing or retail project. It constitutes a limitation to the ownership right and generates to the owners of private properties the obligation to contribute to the maintenance of common property areas, through a monthly administration fee which is paid to the condominium administration. d. Joint Ownership: Joint ownership consists of two or more people owning the same property. This joint ownership is allocated to each person according to the percentage determined in the public deed by means of which they are acquiring the ownership right over the property. If it is not indicated in the public deed the participation percentage of ownership to which each person is entitled of, it is understood that the ownership right is distributed in equal percentages. e. Usufruct: There is an ownership retaining usufruct, that consists in the kind of ownership in which the owner conserves the right to dispose over the property but not the right to use and enjoy the property, which are given to another person. The usufruct title is an example of this ownership form. f. Rural Property: In relation to rural property is important to mention that the acquisition of these kind of properties must consider the accomplishment of legal requirements related to the statutory limitations to acquire rural property in Colombia according to the
ILN Real Estate Group – Buying and Selling Real Estate Series
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