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Registration or cancellation generally has no influence on the use of property held in a simple trust. Given the above policy on simple trusts and who is engaged in commercial activity in relation to the assets of trusts, a person may be required to register or unsubscribe for GST purposes. A bare trust, also known as a bare trust, occurs when a person, the trustee, has only title to the property and has no other obligation to perform or assume responsibility as trustee with respect to the property transferred to the trust. Lenders would be well advised to require a “tripartite” beneficial ownership agreement between the simple trustee, the beneficial owner and the lender. In the absence of such an agreement, the lender has no recourse against the beneficial owner in the event of default. The lender`s only recourse is directed against the land and any other collateral provided by the simple trustee, which is not ideal in a declining market or with a high loan-to-value ratio. The Canada Revenue Agency rejected the reduction and took the position that, since the co-purchaser`s friend had never intended to occupy the property as his principal residence, the complainant was not entitled to an NHR under paragraph 254(2)(b) of the LTE. The individual trustee should register as a trustee or agent if the trustee`s income from his or her business activities (and those of related persons) and not the trust`s activities exceed the threshold for small suppliers. For example, the trustee may earn fiduciary fees or fees for the operation of the escrow property as an agent for the beneficiaries. A naked trustee, also commonly referred to as a candidate, owns a registered title (ownership) of property for someone else and often that property is land. The duty of a simple trustee is to transfer the legal interest to the beneficial owner upon request. .