A custodian maintains trust and trust with the parties to the trust fund. A custodian must perform the tasks with honesty, skill and assiduity. Berry v. McLeod, 124 Ariz. 346 (Ariz. 1979). An agent is a person or entity that holds trusting property for third parties while a transaction is concluded or a disagreement is settled. The role of agent is often played by a lawyer (or notary in civil courts). The agent has a fiduciary responsibility to both parties to the trust agreement. If the terms of the trust agreement are met and the custodian does not meet or refuses the delivery of the object in trust, the remedy, either in law or in equity, is against the custodian and not against the custodian. However, the other party to the trust fund may, as a defendant, be bound to the custodian if the failure to comply with the required trust conditions prompted the custodian to act or where that party asserts rights to the faithful property that infringe the applicant`s rights to him.
See our article on American Litigation. (4) Aggregate accounting required: all service providers are required to apply the aggregate accounting method when analyzing fiduciary accounts. In the case of a real estate transaction, it is a well-established right that an agent must have a fiduciary duty to all parties to a trust contract – seller, buyer and lender. A fiduciary duty consists of (1) the duty of loyalty; (2) the obligation to advertise completely; and (3) the obligation to exercise a high degree of diligence in obtaining the money and to pay it only to the rightful holders. In addition, an agent must avoid any act of self-examination that conflicts personal interests with the beneficiaries and always act in his best faith. In the context of the title company, the obligation arises from the “subscription of a title insurance contract” (issue of title insurance) and the “underwriting of the activities” (with respect to the role of the titrière company as agent and all that is associated with it). In exchange, the agent holds the trust as instructed. If all trust conditions are met, the trust fund is closed. The duties of a trust officer were to follow the instructions of the parties and sponsors of the fiduciary transaction in a timely manner.