Land Trusts
Hi,
I am working on my first deal and need some advice. The seller agreed to put his property in a land trust and make me the trustee. The seller also assigned 100% of his beneficial interests over to me. The seller also did a PT-61 transfer of sale to me at the courthouse for $10 consideration fee. The seller stated in the land trust agreement that he only wanted $88,000 from the sale of the property. Two weeks later I found a buyer, got them pre-approved for a $120K loan and told them that I would sell the property to them for $110K. I contacted the seller and told him that I had found a buyer and that we would be closing in two weeks and now he is demanding more than the $88,000 that we agreed on. Any suggestions for how I should handle this.
Thanks[ Edited by imani2005 on Date 08/11/2005 ]
If you hold 100% beneficial interest in the landtrust, you own the property. Simply stick to the contract. Sell the property for $110k, give the previous owner $88k, take your profit and move to the next deal.
BTW, what is a PT-61 transfer of sale?
Darryle,
http://www.gsccca.org/efiling/pt61/
John $Cash$ Locke
[addsig]
JohnLocke
Thanks for the link.
Thanks for the advice. A PT-61 is a transfer of sale document.
"The seller stated in the land trust agreement that he only wanted $88,000 from the sale of the property. "
I have never seen in a land trust where you state a selling price to go to an individual. But I suppose it is possible. You need to get your paperwork straightened out on any future deals. This is a prime example. If this guy wants to push you, I bet he could get the paper work found to be incorrect. Do not mix land trusts with purchase and sale agreements.