Fast help on Wraps and Land Contracts - Posted by Nicole (AZ)

Posted by B.L.Renfrow on June 15, 2000 at 13:29:04:

Hey Nicole,

Good to see you back again…glad this deal is coming together for you!

I can’'t help with your AZ-specific questions, but in order to transfer title into a land trust, here are the steps:

  1. Create the trust with a trustee of your choosing, naming the seller as beneficiary.

  2. Seller quit-claims the property into the trust.

  3. Seller transfers benefical interest in the trust to you or your entity.

You are correct about selling to your buyer using the installment land contract.

I assume you have Bronchick’s Cash Cow course. I don’t have that one, but I believe all the forms you need are included. However, his land trust course covers that subject in much greater detail, and contains state-specific information, step-by-step instructions and excellent contract examples. If you have time to pick it up before you put this deal together, it’s well worth it.

Brian (NY)

Fast help on Wraps and Land Contracts - Posted by Nicole (AZ)

Posted by Nicole (AZ) on June 15, 2000 at 09:52:21:

Ok, I finally (5 months later) have a buyer for my FIRST investment property. I am going to sell this property on a wrap. I have read Bronchick’s course but I am still totally confused as to were to start. AZ doesn’t use attorneys to close and the title company has informed me that they will only act out instructions provided to them. Here are some of my questions.

How do I transfer the existing title into a Land Trust before selling so that I don’t activate the DOS clause?

From Bronchick’s course there is a copy of a Installment Land Contract. I am assuming this is what I am supposed to use as the contract for the buyer to purchase the real estate.

Does anyone in AZ know if interest needs to be paid on escrow accounts?

I may have more questions but I am trying to make sure that I limit the risk on this first deal as much as possible as I am working with two partners. Thanks to everyone in advance.


Re: Fast help on Wraps and Land Contracts - Posted by JohnBoy

Posted by JohnBoy on June 16, 2000 at 15:40:51:

Different states can have different laws pertaining to Land Contracts. I would suggest using a good real estate attorney to properly structure this for you. It’s much cheaper to spend a few hundred bucks now then to risk thousands later if something goes wrong.

In my state when selling on land contract, we have the buyer sign over a “quit claim deed” back to the seller that is held in escrow (usually with an attorney) in the event the buyer ever defaults on payments. In the event of defaulting on a payment the seller would record the “quit claim deed” releasing any interest the buyer had in the property. Once this has been done then the seller files for an eviction vs. having to go through a foreclosure to get the property back. But each state may have different laws pertaining to how things like this can be legally handled, so it’s always best to hire a good real estate attorney to make sure everything you’ve done is legal and protects your best interest. Well worth the $200 - $300 it will cost you.