I disagree with you completely Tony but… - Posted by Dr. Craig Whisler CA
Posted by Dr. Craig Whisler CA on July 01, 2002 at 13:11:05:
… I suppose there is room enough in this world for two opinions.
I disagrree that the purpose of taking title 'subject to is to get the ‘deed’. It’s purpose is to get the ‘title’ without alerting the lender and running the risk of having him call the loan due in full immediately.
I also disagree that the seller’s name would still be listed on the public records. I further disagree that any subsequent liens would attach to the mobile home. Such liens, if recorded at the county recorder’s office would be completely ineffectual, as they would attach to real property not to personal property as is the case with a mobile home that is not on a pemanent foundation.
If you record your transfer to a “Trustee” of a personal property trust by filing the appropriate UCC document with your state’s Secretary Of State or other agency in case your state is behind California, then the new owner of record will be the Trustee, not the seller. Therefore liens and judgments in the seller’s name would not attach to the Trust, because it is in a different name (the Trustee’s name).
UCC stands for Uniform Commerical Code. It was designed to make the various state’s commercial laws more uniform to facilitate interstate commerce. Not all states have adopted it in its entirety so you need to check with a local lawyer to see what your state’s position on this is.
Neither are you correct, in my opinion, when you state that, . When the seller transfered the title to the Trust he also transferd the beneficial interest to the buyer, presumably. That is how this sale would be effectuated. The title is now in the Trustee and noone will know who has the beneficial interest but the Trustee. Actually even the seller can’t know who has the beneficial interest for sure because the buyer could immediately transfer his beneficial interest to someone else and the the seller would have no notice of the transfer. This is why trusts are so popular. The true owner (the beneficialry) is kept secret from the public’s eyes. You have great privacy with trusts. The seller sets up the trust and will transfer the trust res (trust property) to the ‘New’ Trustee directly and the beneficial interest in the trust would belong to the buyer even though no one would have public notice of who the beneficiary really is. T After that the seller has no ownership interest whatsoever in the moile home since it is out of his name as far as title is concerned but not as far as his obligation to pay the loan goes.
The trust title would now be in the name of the Trustee. Titles are transferred (not deeded) in the name of the Trustee (with language to identify which trust is being conveyed).
You then go on to state that . This is incorrect too. Since this is personal property you use of the word “deed” is inaccurate, inappropriate and confusing at best. Only real property is transfered by deed, not personal property like mobile homes. When you buy a mobile from a lender do you get a deed? Of course not. I think you are also misusing the word “title”. Your recorded Trust agreement is your Title, and since the property has been transfered to the ownership of the Trustee, it IS out of the seller’s name and he cannot further encumber it with liens or judgments in his name. Such liens might be recorded with the UCC but they wouldn’t attach to the Trust because the judgments or other liens would be in the name of the seller not the Trustee.
Lets face it if liens or judgments in the name of the seller they would be irrelevant to the Trustee’s title, and ownership interest.
All is well in LaLaLand Mobile home Estates.