Selling a trust held home via a Land Contract? - Posted by Jim IL
Posted by Jim IL on February 22, 2001 at 23:33:22:
I’ve been doing some reading tonight in my state law books online.
Look at this!
If you own a home that you hold title to in a trust, look at this before you sell it with a land contract.
This sure doesn’t sound too nice, darn it!
*I’ll paste it below
(765 ILCS 430/)
(765 ILCS 430/0.01)
Sec. 0.01. Short title. This Act may be cited as the Sale of
Residential Property Subject to Land Trust Act.
(Source: P.A. 86-1324.)
(765 ILCS 430/1)
As used in this Act:
“Land Trust” means any arrangement under which the title, both legal
and equitable, to real property, is held by a trustee and the interest
of the beneficiary is personal property and under which the beneficiary
or any person designated in writing by the beneficiary, has the
exclusive power to direct or control the trustee in dealing with the
title and the exclusive control of the management, operation, renting
and selling of the trust property together with the exclusive right to
the earnings, avails and proceeds of said property is in the beneficiary
of the trust.
“Residential property” means any single family residence or multiple
dwelling structure containing 6 or less single dwelling units for 6 or
less family units, living independently of each other.
“Real estate installment contract” means any agreement or contract
for a trustee’s or warranty deed, or otherwise, under which the purchase
price of residential property is to be paid in installments over a
period in excess of 5 years with title to the property to be conveyed to
the buyer upon his payment of the purchase price or a specified portion
(Source: P. A. 76-1869.)
(765 ILCS 430/2)
Residential property which is the subject of a land trust may not be
sold under a real estate installment contract unless at the time of
execution of such a contract a full disclosure of the name of the
trustee and the designation of the trust and all of the beneficiaries of
the trust is made by the seller to the contract purchaser and the
contract is signed by the beneficiaries having the power of direction.
Each such “real estate installment contract” shall be deemed to include
a provision, whether actually incorporated in the “real estate
installment contract” or not, that the beneficiaries undertake to convey
or cause to be conveyed the real property which is the subject of the
"real estate installment contract" in accordance with the terms of the
"real estate installment contract". Any violation of this Act renders
such a real estate installment contract voidable at the option of the
(Source: P. A. 76-1869.)
That is it folks, just for reading and pondering,