Land Trusts in SC - Posted by JNeubauer

Posted by Dave T on July 20, 2002 at 22:48:30:

Here in SC, the problem is that most lawyers have never heard of a “land trust”, much less done one. I went to a real estate firm in Myrtle Beach, SC to see if anyone knew how to draft a land trust. This firm does a very high volume of real estate closings, so I felt they should have some land trust experience (in SC we do attorney settlements). The lawyer I talked with told me that noone in the firm knew what I was talking about, but that he would research it and prepare a trust document for me if I wanted him to (on the clock, of course).

If the attorney knows about trusts and insists upon notifying the lender, the attorney will call the lender’s legal department and coordinate the draft language of the trust to make sure that the trust itself is acceptable to the lender and will not cause a problem later for the borrower.

Telling the attorney that you want to do it differently, may just prompt the attorney to advise you to seek legal services elsewhere. If the attorney is not comfortable with how you want to do a land trust, it is probably a waste of time and money to force the issue.

Land Trusts in SC - Posted by JNeubauer

Posted by JNeubauer on July 19, 2002 at 22:36:57:

Just purchased 2 houses on Hilton Head and of course as usual the closing attorney feels that we need to tell the lender about me putting the property into a Land Trust. Does anyone know of an attorney in South Carolina that can do this for me without all the hassle? It is quite obvious that this particular attorney needs to study the law. I need one who doesn’t. Thanks,

Re: Land Trusts in SC - Posted by Jim FL

Posted by Jim FL on July 20, 2002 at 17:20:16:

Perhaps it would be a good idea to remind the attorney who they are working for.
When you HIRE an attorney, they in essence become your employee or advisor.
Just tell them that while you appreciate their advice, and will take it under consideration, ultimately the decision as to what to do is yours.
Be polite and firm with this.

and if the attorney REALLY kicks up their heels and will not do the deal for you without notifying the lender, then go elsewhere.
Have the attorney draft the docs, including something in writing notifying the lender that the property was placed in a trust, telling them you will send off the doc to the lender.
Then just don’t.

You should learn to draft these things yourself, then you can avoid having an attorney muck up the process.
Since you have had them do a couple already, you have the docs you need.
Just retype them, creating blank docs for your use, and go from there.

I have not used an attorney to set up a trust in a VERY long time, too expensive, and there is no point relinquiching control of any aspect of a deal if you don’t have to.

Put the attorney in check and go buy some more houses.

Congrats on the ones you have already,
Jim FL

Re: Land Trusts in SC - Posted by Dave T

Posted by Dave T on July 20, 2002 at 08:07:50:

I have had the same problem. When I mention land trust, the lawyer’s eyes glaze over. Instead, ask the attorney about a revocable living trust with your property as the only asset. I suspect that the attorney will now know what you are talking about.

You may still have to take title in your name, then deed into the trust.

Re: Land Trusts in SC - Posted by val

Posted by val on July 20, 2002 at 07:18:51:

Title it in your name first, then re-title (deed) it
the next day in the Land Trust.