In fact from a difficulty for the other side view it is better to have the trustee out of state. You would still have you as power of attorney and in effect manage the property. You could even have a resignation and appointment of new trustee(you) signed so that you could control better. If you don’t recorded it, it would be as if it never existed if they were trying to locate the owner. You could use it if you needed to close locally on the sale.
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?
I dont know where you goy the information about how to do a subject2 deal,but I would suggest following the methods of “The ABC of subject to”. The documents that you speak of are correct,but the only docunent that should be recorded is the warranty deed. In a nutshell here is what you should do:Purchase real property in a land trust.Use the seller as the grantor,select your own trustee,have the seller as the initial benificiary and use an assingment of beneficial interest to youself. As far as a way to sell the property, I would keep control of the deed. You are in Nevada, a very friendly land lord state .If any thing went wrong with you buyer, it is much easier to evict than foreclose. My opinion ,hope that helps
Thanks for your help. So your suggestion is that
I should L/O the house to my buyer because it is
easier to evict? I could sell on a land contract…
but if the buyer doesn’t perform I would have to
foreclose? Also, I am new to the area… I don’t
know of anyone who I can “trust” to be a trustee.
The people I know who could do this are in
Washington state. What should I do about this?
Should I just be trustee in the trust agreement
and the warranty deed to trustee? Then when I
am ready to sell could I appoint a new trustee?