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?