Posted by pk on June 07, 2002 at 11:12:13:
Hmmm… interesting. You mean if you were the beneficiary AND limited POA? I’d double check w/ a lawyer first to see if there were any conflicts of interest or any other issues… not that it couldn’t be done…
Land Trust Agreement - Posted by steve
Posted by steve on June 05, 2002 at 12:47:10:
I need information on how to go about creating a Land Trust Agreement when buying RE. I am new to the business and read that it is better (legally) to control RE through a Land Trust when signing the documents. My question is how do you create a Land Trust? Do you need a Roth IRA, or some other entity?
All responses will be greatly appreciated.
Thank you very much,
Steve.
Re: Land Trust Agreement - Posted by DavidV
Posted by DavidV on June 05, 2002 at 13:08:16:
What i would suggest is to get a course from someone that has one on land trusts. I didn’t find a single lawyer that had heard of a land trust in my area.
You don’t need any entities to set up a land trust. Although you may want to look into having an entity hold the beneficial interest of the trust.
Bill Bronchick has a course available on this site that i use and have had no problems. It is pretty much a consensus here that it is better to hold title in a trust than in your own name. Good luck
David
Re: Land Trust Agreement - Posted by pk
Posted by pk on June 05, 2002 at 15:36:25:
Right. No entity needed to set up a land trust. My best advice would be to find a lawyer who deals w/ real estate and RE investors, and thus would probably know about land trusts. it’s a quick and easy set up. there are 3 parts to it:
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deed to trustee
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trustee
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beneficiary
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the deed to trustee needs to be recorded and can be done so for a minimal fee ($15 in so FL). It will state who the trustee is.
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trustee: find someone who you can trust (and preferably local) to become the trustee. they have all controlling authority over the trust. ie, if you purchased a property under a land trust, your trustee has final approval as to who the property sells to and for how much etc, since that is who is required to sign all docs pertaining to the trust. again, make sure it is somebody you can trust.
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beneficiary: this should be you (unless you want to, you can put my name there! :-). a quick form that identifies you as the beneficiary is all you need, and you dont even need to record it. you can just file it at home should anyone need to see it. Unless you get a court order to show who the beneficiary is, you should never have to disclose that information. again, your trustee should not be handing that info out either.
the best advantage to setting up a landtrust is the “smoke screen” asset protection it provides. ie, it is somewhat difficult to find out who the beneficiary is, and thus not many poeple will know what and how much you own.
what type of real estate investing would you be doing? flipping? rehabbing? renting? etc…
hope that helps!
pk
I disagree - Posted by CurtNY
Posted by CurtNY on June 06, 2002 at 07:59:21:
PK,
I disagree, you state “find someone who you can trust (and preferably local) to become the trustee. they have all controlling authority over the trust. ie, if you purchased a property under a land trust, your trustee has final approval as to who the property sells to and for how much etc” Your trustee does not have controlling authority over the trust the beneficiary does, the Trustee just acts on the beneficiary’s behalf. They have no say what so ever as to who I SELL THE HOUSE TO, OR FOR HOW MUCH IT SELLS. They just sign the necessary paperwork for the sale on my behalf, keeping my identity unknown.
Re: I disagree w/ your disagreement 
- Posted by pk
Posted by pk on June 06, 2002 at 12:57:10:
Hi… I disagree with your disagreement I understand what you are saying… Ok, of course, you as the beneficiary and real estate whiz are controling the whole deal in practice. And your trustee SHOULD act in your behalf. However, the trustee does indeed have absolute authority to do whatever he wants with the trust. That, in fact, is his entire reason for existing: to control the trust. For example, let’s say you bought a property for 50k under a land trust and want to double close and sell it at 85k. When you show up at closing, who do you think has to sign all the papers to make it a valid transfer of sale? Yup. Your trustee. Which also means that if your trustee wanted to, he/she COULD negotiate the deal themselves behind your back and do all the signing they want. Of course, you, as the beneficiary, would reap all the rewards (or losses!) of the deal. Granted maybe it’s a fine point, but a note of caution: trust your trustee.
Re: I disagree w/ your disagreement - Posted by Bill Gatten
Posted by Bill Gatten on June 11, 2002 at 12:12:36:
Sir,
No offense but you are quite incorrect. The trustee for a land trust has the Power of Sale under the exclusive direction of the beneficiaries only. Any action on the part of the trustee which was not directly according to, and by unanimous consent of, the beneficiries could (and likely would) put him/her/it in jail.
Furthermore a bonded foreign corporation (non profit) is a far better choice for a trustee. An idividual would likely not know the the law specific to land trusts and their anonymity benefits, and its rights as a trustee if deposed or threatenedd with legal action. An individuals die and get the property tied-up in their own Probate (sometimes for years)…always use a corporation if possible. Always!
A land trust is specifically directed by its beneficiaries: in most jurisdictions the trustee has absolutely no function at all beyond holding the title and dealing with matters pertinent to it–as directed by the beneficiary/ies. Period. This fact is usually all that separates a land trust from a dry or “failed” trust.
And…at the trust’s termination the only document signed by the trustee is the reconveyance or transfer of the deed.
'Would suggest some extra reading on this subject before offering definitive advice or direction.
Bill Gatten
I agree 
- Posted by CurtNY
Posted by CurtNY on June 11, 2002 at 08:35:43:
I see your point about trusting your trustee!
Re: I disagree w/ your disagreement - Posted by Tim (CT)
Posted by Tim (CT) on June 06, 2002 at 18:07:00:
If you had the original seller sign a limited POA on a subject to transaction, wouldn’t that allow you to sign all of the papers when you close on the property down the road?