In a nominee agreement, the owner conveys property to a nominee who the latter consents to hold and execute transactions on behalf of the owner. The purpose of the agreement is to outline, for legal purposes, the ownership of the property and the role of the nominee.
TL;DR (Too Long; Didn't Read)
The purpose of a nominee agreement is to outline, for legal purposes, the ownership of property and the role of the nominee.
For legal purposes, a nominee agreement represents an arrangement in which the owner registers the property in the name of a nominee so that the latter legally holds the property and all the rights related to it such as mortgages, interests, easements, licenses, leases, by-laws and charges. Unlike the owner, the nominee has no beneficial interest in the property.
Read More: What Are the Different Types of Property Deeds?
Express Written Authorizations
The nominee cannot make decisions about the property without the express and written authorization of the owner. For many standard agreements, the nominee can only perform, or execute, certain instruments according to the authority outlined in the agreement. This includes performing and/or delivering the following types of documents: leases, deeds, transfers, assignments, contracts and other documents related to the property.
Indemnity to the Owner
The nominee collects revenues and receipts from the execution of business transactions related to the property on behalf of the owner. The nominee agreement requires the nominee to remit to the owner all financial instruments and the proceeds from transactions conducted through normal business activities. As one condition of the agreement, the nominee incurs no liability and is not responsible for performing contracts between the owner and a third party.
Read More: How to Write a Letter of Indemnity
- Syndicate Room: Nominee
- Get Free Legal Forms: Nominee Agreement
- Rich May: The Massachusetts Nominee Trust
- Legal Beagle: What Are the Different Types of Property Deeds?
- Legal Beagle: How to Write a Letter of Indemnity
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