Posted by colvegas on September 24, 2006 at 10:33:31:
The commments posted here are from my vantage point correct the trust agreement should never be recorded due to it being a private agreement between the beneficiaries.
The trustee in the title vesting will show the both legal and equitable title and thus ownership of the property.
the attorney advising you on this is does not understand lans trust structure.
When the trust terminates if it is a revocable entity the the title will transfer back to the settlor/grantor so there is not issue with selling the property at all…
Land Trust Experts…Record the Agreement? - Posted by Alexander (FL)
Posted by Alexander (FL) on September 22, 2006 at 14:38:59:
We are dealing with a new real estate attorney who is requesting that the Land Trust Agreement for the Land Trust be recorded.
His position is that if the Land Trust Agreement is not recorded, then the Trustee will not be able to sell the property in trust later on.
My position, and correct me if wrong, is that the Trust Agreement is a private agreement between Trustee and Beneficiaries and should not be recorded.
If recorded, it defeats the main reason for its creation: privacy.
Now, I could record the Agreement minus the Beneficiary Addendum but rather not record it at all…
Alexander,
You already know the attorney is wrong.
So, take into mind one thing, the attorney works for you.
So, kindly tell the attorney, ‘thanks for the advice, however, here is how I want this done’.
and, if they still give you a hard time, then either get a new attorney, or, have yours call one who DOES know the facts.
If you need one, give me a shout in email and I’ll gladly give you my attorney’s number for him to call.
I take properties into trust all the time, and NEVER record anything but a deed.
When we resell the houses in trust, the contract with the buyer simply states, “so and so, trustee” as the seller, and then the trustee signs the deed at close…along with an affidavit stating that the trust exists, and that the trustee has the right to sell the property.
This simply remains in the attorney’s file…might even just be his ‘process’.
Re: Land Trust Experts…Record the Agreement? - Posted by dutch
Posted by dutch on September 23, 2006 at 10:10:53:
Many attorneys do not understand trust law, and specifically land trusts.
Check your State law. It’s all about YOUR state’s law on trusts. Many, but not all, states require that some type of Memorandum of Trust (called different things in different states) be filed. All it does is say who the trustee is and that there IS a valid trust. Not usually a problem.
I personally don’t file anything UNTIL I go to dispose fo the property. Then I get a call from the title company say, “oops, you need to record a Memo of Trust before we can close”. I bring one to closing, and everybody is happy. It gets filed 2 seconds before the property is deeded OUT of the trust. But that is Oklahoma. Your state may be different.
NEVER record the actual trust itself unless state law says you must, and if that is so, then there is no reason to bother with a land trust type of trust.
Posted by John Merchant on September 22, 2006 at 15:53:37:
The real issue is what will the title co. require if the RE is in a trust now, when you later sell the property.
So I suggest you call and talk to the title officer of the co that issued your title policy and get his/her take on this.
In my experience a trust holds title as “Tom Thomas Trustee for South Texas Trust u/d/o April 4, 2005”, and that trustee signs the new deed to new buyer, so it really is irrelevant who the beneficiaries of the trust are.
And if the title is held like that, then the Trustee can sign the deed to new buyer.
Re: Land Trust Experts…Record the Agreement? - Posted by Alexander (FL)
Posted by Alexander (FL) on September 23, 2006 at 15:10:24:
That’s one of the great things about land trusts…most attorneys - even real estate attorneys -don’t understand them.
I have used land trust before and this is the first time I was asked to record the agreement. I was thinking that the law might have changed due to 9-11
Not so.
In Florida a trust agreement is still not required to be recorded.
Posted by Alexander (FL) on September 22, 2006 at 16:17:52:
The property is not being sold now, we merely Quit Claimed it into a trust.
The attorney is saying that we will not be able to sell the property later if the trust agreement is not recorded.