Thinking about buying an apartment in Bogotá? Do you know how the money you contribute to your payment plan is safeguarded before the property is delivered to you? The answer is: a trust fund (fiducia), and below we’ll explain exactly what it is.

WHAT IS A TRUST FUND (FIDUCIA)?

The word fiducia means “trust.” In Colombia, fiduciary agreements are defined as acts of trust in which a person (the Trustor) delivers a sum of money or movable/immovable property to a Trust Company (Fiduciaria) so that it can carry out a specific task, such as investment, management, collection, or guaranteeing said collection.

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Trust funds play an important role in significant financial agreements—such as purchasing a property—because the financial institutions that participate in a fiduciary arrangement have the necessary experience to ensure that the value of the entrusted assets is preserved while any type of transaction is being completed.

WHAT IS A REAL ESTATE TRUST FUND (FIDUCIA INMOBILIARIA)?

When developers undertake a real estate project, they often rely on a trust company (sociedad fiduciaria) to manage the assets and funds related to the construction of the property. Under this type of contract, the trust company’s main role is to collect the money invested in a purchase agreement, manage it, and invest it appropriately until the final conditions are met for the real estate project to proceed.

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HOW DOES A TRUST FUND PROTECT THE MONEY THAT THE BUYER HAS PAID FOR THEIR HOUSING PROJECT?

Reputable developers—such as Mendebal, with more than 36 years of experience—use this type of contract in their real estate projects to guarantee buyers that the home they are purchasing will be built according to all the specifications under which it was sold.

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It is essential that whenever you decide to invest in a housing project, you ensure that the developer you sign a purchase agreement with uses this mechanism. This will give you the peace of mind and confidence that your money is in good hands.

Now that you understand what a trust fund (fiducia) represents, we invite you to explore our available projects by CLICKING HERE: https://www.mendebal.com/sala-de-ventas-online-mendebal/ or contact us via WhatsApp so we can guide you toward the home you and your family deserve.

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Join the #MendebalFamily today!

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