Posted by JT-IN on April 29, 2006 at 18:55:35:
.
Land Trusts in Arizona, worth it? - Posted by Hobbyinvestor
Posted by Hobbyinvestor on April 29, 2006 at 02:39:14:
In Arizona, the beneficiaries name and address must be disclosed. Are there any advantages for placing a propertie’s deed in a trust to an investor, or should I place it directly into an LLC? Thanks for your feedback.
Re: Land Trusts in Arizona, worth it? - Posted by Bob Smith
Posted by Bob Smith on April 30, 2006 at 24:17:24:
The disclosed beneficiary can be another trust, so privacy can be maintained.
Re: Land Trusts in Arizona, worth it? - Posted by joe
Posted by joe on April 29, 2006 at 03:34:07:
I still use them. They help with the Due on Sale clause on mortgages.
Re: Land Trusts in Arizona, worth it? - Posted by Hobbyinvestor
Posted by Hobbyinvestor on April 29, 2006 at 13:04:13:
Joe,
How does it help if the world has notice that a sale took place? Am I missing something?
Re: Land Trusts in Arizona, worth it? - Posted by Joe
Posted by Joe on April 29, 2006 at 15:58:26:
Transfer of property into a Land Trust with the sellers as beneficiaries is not a violation of the Due on Sale clause. This transfer is recorded! What is not recorded is the transfer of the beneficial interest from the sellers to your LLC
Re: Land Trusts in Arizona, worth it? - Posted by Hobbyinvestor
Posted by Hobbyinvestor on April 29, 2006 at 16:27:34:
I understand what you are saying. My concern would be the seller voiding the land trust if I don’t record my LLC as the new beneficiary within two years based on the following law:
?..Any conveyance of real property or an interest in real property which does not include the disclosures required by this section with respect to the property so conveyed is voidable by the other party to the conveyance. Any action to void the conveyance shall be commenced within two years after the date of recordation of the document effecting the conveyance."
Statute 33-404 E
Re: Land Trusts in Arizona, worth it? - Posted by Joe
Posted by Joe on April 30, 2006 at 12:25:31:
As far as my attorney is concerned, there is no requirement to notify (publicly record) a change of beneficiary. He is the same attorney that created the trust I use. His interpretation was that the beneficiary is only disclosed on the DEED transferring the property into the trust. I suggest you seek an attorney of your own to look into this further. I’d really would like to know his interpretation.
Dsiclosure… - Posted by JT-IN
Posted by JT-IN on April 29, 2006 at 17:36:26:
H:
The statute that you cite is state specific, and obviously may apply where you are, but not in any other state.
This statute applys to Disclosure of condition to the property. Has absolutely nothing to do with whether a Trust is used or not… Not sure what connection that you are attempting to make there, but none exists. When a property transfers to a Trust, Disclosure should occur just the same, as in any other sale.
Transfer of the corpus of a trust (transfer of beneficial interest) is not a transfer of real property, but personal property.
Again, there is no linkage between the two subjects, Disclosure and Trusts. However, the party who could cancel if there was no disclosure at that time, would be the Grantee, or the party receiving the corpus of the Trust; which is usually the investor, not he Seller. No logic to your concern here…
JT-IN
Re: Dsiclosure… - Posted by Hobbyinvestor
Posted by Hobbyinvestor on April 29, 2006 at 17:53:50:
JT-IN,
I?m not inferring disclosure in the sense you mentioned. Sorry, I did not include more of the law:
?..every deed or conveyance of real property, or an interest in real property, located in this state which is executed after June 22, 1976 in which the grantee is described as a trustee or acts as a trustee shall disclose the names and addresses of the beneficiaries for whom the grantee holds title and shall identify the trust or other agreement under which the grantee is acting or refer by proper description to the document number or the docket and page of an instrument or other writing which is of public record in the county in which the property so conveyed is located in which such matters are disclosed.?
Law 33-404. A.