Land Trust People Or Derrick Ali
When granting or selling a property out of a land trust, what items need to be on the deed to grant that property to a your buyer.
When I bought the property, I put it in a trust. "The "Blank" Family Trust, Joe Smith as Trustee.......Trust Number: "Address of Property"....legal description.
When I sell, do I need to includ the trust number on that deed and if so how would I write it?......and for the Grantor part, do I write "The "Blank" Family Trust, Joe Smith as Trustee as the grantor(s)?
Another way of asking this question, now that I think about it, is the deed incomplet if I don't include the Trust Number?
As long as the legal description and address of the property are on the deed, should everything be ok?
The way we do it is we transfer the beneficial interest of the trust to the new buyer, and retain a small interest incase they default. This allows us to not have to foreclose on the property if the new buyer is in default, and it allows the new buyer to gain all of the tax benefits of homeownership. We sell with owner financing to people with bad credit though so this may not apply if you are selling the property outright with underwritten financing. I would call up a title company and ask them how they handle trusts.
Jace
I see what your saying iglooman, but what your doing is the initial sale. I accomplish the same thing with a Land Installment Contract. There is no need to assign the beneficial interest.
What I'm referring to is when the buyer refinances and cashes me out. That is when they get the deed to the property.
From what I understand about land trusts (and trusts in general) is that the trustee has ownership of the property and therefore must be the grantor of the deed; just like you said.
1212 Main Street Trust, Joe Investor Co., Trustee, (Grantor) does hereby grant, sell, etc. ... to Jane Homeowner (Grantee) ....
In general though, the current name on the deed is what should be put on the transfer deed, spelled exactly the same, letter-for-letter.
Jace
The trustee doesn't own the house, the trust does. The trustee is hired to oversee all the activities of the trust including the sale, so that's why his name is on the deed as trustee.
A trustee is a party who is given legal responsibility to hold property in the best interest of or for the benefit of another.
In the instance of the land trust, property is titled to the trustee whose powers and responsibilities are specified by the document that established the trust.