Posted by William Bronchick on January 23, 2002 at 07:52:26:
You should record the deed as soon as you verify the title is good, the loan balance is what the seller says it is, etc.
You can be both trustee and beneficiary in this case; if the trust fails, you are the owner. I would rather see your LLC or Corp as beneficiary, though.
Assigning a trust and “subject to”? - Posted by Erik
Posted by Erik on January 22, 2002 at 23:06:47:
I may be doing my first deal tomorrow…
I have some concerns.
A seller is going to deed me a property in Sparks, Nevada.
I’m not sure if I should sell with a land contract, subject to,
or a lease option yet. The house is highly leveraged…
therefore, I will probably only make some upfront money
by way of deposit or down payment and then a small
back end when my buyer purchases the house.
Anyway, I am trying to figure out how to have the seller
create a land trust and then deed the property to the trust; then assign the beneficial interest to me. This is what I know so far… the seller and I should execute a “agreement and declaration of trust” with the seller as beneficiary and myself as trustee. Then the seller and I should fill out a Warrantee Deed to Trustee that should then be recorded.
Then the seller can assign by a “assignment of beneficial
interest of trust” to myself… therefore, I become
beneficiary of the trust that is recorded in the courthouse?
Should I wait to record this warranty deed until I find a
buyer? Or should I do it right away?
My biggest concern is… when the seller assigns the
beneficial interest in the trust to me, I then become both
the trustee and beneficiary… and Bronchick sais that this
could pose a problem in court. This is why I am confused.
Could someone please explain what happens once I am the
beneficiary of the trust? Do I have to resign myself as
trustee and appoing someone else?
Also, if I sold the house “subject to” could I just get some
downpayment money and assign beneficial interest to my
buyer and be done with the deal? Or should I retain control
of the title by L/O or land contract until the buyer performs?
Erik