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Purchase Money Trust Deed for Hong Kong

Purchase Money Trust Deed Template for Hong Kong

A Purchase Money Trust Deed is a formal legal document used in Hong Kong to establish and document a trust arrangement where one party (the settlor) provides funds for the purchase of property to be held in trust by another party (the trustee). This document, governed by Hong Kong law, sets out the terms and conditions of the trust, including the rights and obligations of all parties involved, the management of the trust property, and the distribution of benefits. It combines elements of trust law with property law and must comply with Hong Kong's Trustee Ordinance and Conveyancing and Property Ordinance.

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What is a Purchase Money Trust Deed?

The Purchase Money Trust Deed is a crucial legal instrument in Hong Kong's property and trust landscape, typically employed when one party provides funds for property acquisition but wishes to have the property held in trust for specific beneficiaries. This arrangement is common in family wealth planning, property investment structures, and certain commercial transactions. The deed must comply with Hong Kong's trust and property laws, including the Trustee Ordinance (Cap. 29) and the Conveyancing and Property Ordinance (Cap. 219). It details the trust's creation, the trustee's powers and duties, beneficiary rights, property management requirements, and termination provisions. The document is particularly relevant in situations involving family property arrangements, asset protection, or structured property investments.

What sections should be included in a Purchase Money Trust Deed?

1. Parties: Identification of the Settlor (purchaser providing the money), Trustee, and any Beneficiaries

2. Background: Recitals explaining the context of the purchase money trust arrangement and the intention to create the trust

3. Definitions and Interpretation: Definitions of key terms and interpretation rules for the deed

4. Declaration of Trust: Formal declaration establishing the trust and specifying the trust property

5. Purchase Money Details: Specifics of the purchase money provided, including amount, source, and payment details

6. Trustee Powers and Duties: Comprehensive outline of trustee's authorities and responsibilities regarding the trust property

7. Trust Terms: Core terms governing the operation of the trust, including distribution provisions and trust period

8. Property Management: Provisions regarding the management, maintenance, and dealing with the trust property

9. Accounting and Reporting: Requirements for financial records, accounts, and reporting to beneficiaries

10. Trustee Remuneration: Details of any fees or compensation payable to the trustee

11. Termination Provisions: Circumstances and procedures for terminating the trust

12. Governing Law and Jurisdiction: Specification of Hong Kong law as governing law and jurisdiction for disputes

13. Execution: Formal execution clauses and signing requirements

What sections are optional to include in a Purchase Money Trust Deed?

1. Successor Trustee Provisions: Procedures for appointing replacement trustees - include when multiple trustees are involved or likely

2. Security Provisions: Additional security arrangements - include when required by the nature of the purchase or financing structure

3. Tax Provisions: Specific tax treatment and obligations - include when complex tax implications exist

4. Third Party Rights: Rights of third parties under the deed - include when relevant third party interests exist

5. Anti-Money Laundering Provisions: AML compliance requirements - include for high-value transactions or when required by regulatory context

6. Dispute Resolution: Detailed dispute resolution procedures - include when parties want specific resolution mechanisms beyond court jurisdiction

7. Insurance Requirements: Specific insurance obligations - include when valuable property requires particular insurance coverage

What schedules should be included in a Purchase Money Trust Deed?

1. Property Details: Detailed description of the trust property, including legal description and title details

2. Purchase Money Details: Detailed breakdown of the purchase money, including payment schedule if applicable

3. Beneficiary Information: Full details of beneficiaries and their respective interests

4. Trustee Powers: Comprehensive list of specific powers granted to the trustee

5. Fee Schedule: Detailed breakdown of trustee fees and other administrative costs

6. Required Notices: Forms of notices required under the deed

7. Execution Requirements: Specific requirements for execution, including any witnessing or certification requirements

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Hong Kong

Publisher

Genie AI

Document Type

Purchase Agreement

Cost

Free to use
Relevant legal definitions

















































Clauses
































Relevant Industries

Real Estate

Banking & Financial Services

Legal Services

Property Development

Investment Management

Wealth Management

Trust Services

Professional Services

Family Office Services

Relevant Teams

Legal

Compliance

Real Estate

Trust Administration

Wealth Management

Property Management

Risk Management

Corporate Advisory

Investment

Client Services

Relevant Roles

Legal Counsel

Trust Manager

Property Manager

Estate Planning Advisor

Wealth Manager

Compliance Officer

Real Estate Attorney

Trust Administrator

Property Investment Manager

Family Office Manager

Corporate Lawyer

Conveyancing Manager

Financial Advisor

Risk Manager

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