Posted by Abraham Santiago on April 22, 2006 at 19:52:54:
Hello to everyone:
Currently I’m becoming active investing in foreclosures in Puerto Rico. I understand that in the States the preferred way to hold and convey real estate in through irrevocable land trust, however, when I met with a local lawyer specializing in land trust in PR he told me the structure used by most investors in US was not allowed here and that land trust were irrevocable in Puerto Rico. Furthermore, he mentioned to me that if was able to present to him the structure used of those investor (their contracts and procedures) he might find a similar way to overcome this problem.
The way I learned was useful to obtain ownership of real estate “subject to” was that the person will be the grantor of the house, you the investor will put your corporation as trustee, and finally the seller will be the beneficiary. However, when setting the trust you will ask the seller to fill out another contract that will assign that beneficial interest to you (the investor). I would like to know if this procedure is correct and if anyone could provide me electronic samples to analyze an alternative way to deal with this legal entity in PR. I will appreciate your help since I have the urgency of completing these deals. Thanks to everyone and please let me know.