a completly new idea for me - Posted by wayne

Posted by SteveS(CPA) on June 17, 2001 at 15:53:52:


You are pretty much correct about everything. I will try to explain the rest. Please talk to your local real estate attorney because laws differ from state to state.

A.Limitd power of attorney
A limited power of Attorney gives another person authorization to act as agent or attorney for another. Common-law and civil-law systems differ considerably with respect to powers of attorney, and there is also considerable diversity among the civil-law systems themselves. Many of the general powers of attorney that are important in civil-law countries come under the powers of trust in common-law countries. For example, one may be given the general power to carry out all of a certain type of act, such as carrying on a business after the owner’s death, or one may be given the power to carry out only some very specific act. The power of attorney describes what the agent has the power to do.

B. Property Disclosure Statement
Residential real property in regard to the property disclosure statement is defined as, “all residential real property consisting of not more than
Four family dwelling units, all of which are contained in one structure.” Whereas the definition of residential real property in regard to the Lead-based paint disclosure is defined as, “any residential dwelling built prior to 1978.” The number of units is not restricted when it comes to the disclosure of lead-based paint. However, there are several exemptions to the property condition disclosure statement and the lead-based paint that some properties fall under.
Exemptions for the property condition disclosure statement are :
(1) Transfers pursuant to court order, including transfers ordered by probate court in the administration of an estate, transfers between spouses resulting from a judgment of dissolution of marriage or legal separation, transfer pursuant to a writ of execution, transfers by a trustee in bankruptcy, transfers by eminent domain, transfers by government agencies, and transfers resulting from a decree for specific performance;

(2) Transfers to a mortgagee by a mortgagor in default, transfers by any foreclosure sale after default in an obligation secured by a mortgage, transfers by a mortgagee or a beneficiary under a deed of trust who has acquired the real property by foreclosure or by a deed in lieu of foreclosure or transfers by a collateral assignment of beneficial interest;

(3) Transfers by a fiduciary in the course of the administration of a decedent’s estate, guardianship, conservatorship, or trust;

(4) Transfers from one co-owner to one or more other co-owners;

(5) Transfers made to a spouse, a child, a parent, a sibling, a grandchild, or a grandparent;

(6) Transfers of newly constructed residential real property which has never been occupied.
Exemptions for the lead-based paint disclosure are as follows:
(1) Dwellings without bedroom units (lofts, efficiency and studio apartments)
(2) Residential units leased for 100 days or fewer (such as vacation homes)
(3) Housing designated as bing exclusively for elderly or handicapped persons. If children are expected to reside in the facility, the disclosure regulation applies.
(4) Rental housing that has been inspected by a state-certified inspector and has been found to be free of lead-based paint hazards.

C. assignment of beneficial interest
A beneficiary of a land trust can pass his or her interest to someone else by a simple assignment of the beneficial interest ? there is no need for a deed which would become a part of
the public record. Land trusts may also be used to obviate some of the delays and expense associated with probate proceedings. A land trust beneficiary may designate in the trust
agreement a successor in the event of death. The successor need only establish the death of the beneficiary to immediately take over his or her interest. No intervention of a court is

D. Warranty Deed
A deed in which the grantor fully warrants good clear title to the premises. Used in most real estate deed transfers, a general warranty deed offers
the greatest protection of any deed.

a completly new idea for me - Posted by wayne

Posted by wayne on June 17, 2001 at 03:13:55:

I have been focusing on ideas that i completly failed to take into account the following issues:

Bill of Sale
Power of attorney
Property disclosure statement
land trust agreement
assignment of benificial interest
purchase and sale agreement
Warranty Deed to trustee
Due on sale disclosure
Authorization of loan sheet.
cya letter
Pac Trust

Please bare with me for a moment and correct me (bluntly if need be) if I am misinterpreting what these are.

1-Bill of sale acts basically like a car bill of sale, showing purchase price of home, terms?, date of transfer, (please include anything else this needs.

2-Limited power of attorney. This concept confuses the hell out of me but I hope my understanding is correct that this gives the trustee the power to deed the property only under the the direction of the beneficiaries. Please explain this concept in laymens terms until I completly grasp the concept.

3-Properties disclosure statement…have no clue what this is…please explain.

4-Land trust agreement. I believe this is where I (the trustee) get ahold of the deed of the property.

5-assignment of beneficial interest…no clue what this is please explain.

6-purchase and sale agreement…this is the actual contract for the land stating all terms etc etc.

7- warranty deed to trustee…confuscious say huh?

8-Due on sale disclosure…I believe this is supplied by the seller to determine if there is a due on sale with the existing financing that is triggered when the deed is transferred to the trustee (me)

9-Authorization of loan sheet. I believe this is the sheet the seller signs giving you access to talk the lender and all lien holders to verify all information on the properties encumberances.

10cya letter/seller disclosure form…the only thing I can think that this is, is a Cover Your A**ets form.

11-pac trust…really no clue…searching the archives just confused me even more…some posts asking to explain it in laymens terms, yet by third line laymens terms became rocket scientists terms.

Although I do not understand how these all interrelate together yet, I do know that they are critical when going into a “motivated” seller deal and protecting your interests.

In the meantime, all deals I will enter into will be basically I have a buyer at close until I grasp these concepts and master them. But in the meantime I dont want to miss out on genuine opportunites.