TITULARIDAD FIDUCIARIA DE LAS JUNTAS DE COMPENSACION Y TITULARIDADES SUBYACENTES DE SUS MIEMBROS.

Abstract

Recognition that compensation boards hold a fiduciary title enabling them to dispose of the properties resulting from land adjustment processes poses the need, especially in situations such as the current economic crisis, to clarify what laws apply to such title and what laws govern what we term the «underlying titles» held by all or some of the members of the board until and unless the properties are disposed of. These two types of title are connected. They are not contradictory if the fiduciary title is limited to recognition of a power of disposal that creates a resolutory link to the underlying title of the board members, depending on the members' total or partial share in the board. This paper analyses the possibility and even the need to permit the registration of underlying title to shares as a fundamental part of real estate publicity. Underlying title of this sort could even become full title if the board fails to exercise its title for disposal and title is eventually awarded to the board members. On the other hand, if the board does exercise its title for disposal, the board members' underlying title would be terminated. Linked to this, there is also the matter of the definition of what laws apply to the shares belonging to the members when they have purchased their shares in cash instead of acquiring their shares through mere subrogation of the property they have contributed to the board. There is also the question of share configuration with respect to third parties as extra security on top of that which pertains to the immovable property incorporated in the board.