Posted by MoniqueUSA on June 17, 2001 at 22:27:17:
Lazaro,
After deciding to make an offer, your first step is to get a signed Purchase and Sale Agreement (Doc #1). At the same time, I get an Authorization to Release Information (Doc #2) on all loans, and a Seller’s Property Disclosure Statement (Doc #3, this is useful, but certainly necessary). None of these documents require a Notary Public. I don’t know what’s in the Addendum to Contract document that you refer to.
I get all other documents signed AT CLOSING. The last thing I want to do is confuse the seller with any other paperwork at this time.
Each guru has similar, but different, Land Trust paperwork. For instance, LeGrand and Brown don’t use a Trustee’s Affidavit and Certification.
Your title company should do a title exam for you before closing. The exam will confirm that the Seller owns the property, that the Seller can sell the property themselves (no joint ownership), the liens and encumberances on the property, and that the previous documents in the chain of title have been filed and recorded properly. The title company may also verify the property taxes are paid and current.
The Seller conveys ownership to the Land Trust through either a Warranty Deed (you want this one) or a Quit Claim Deed, but not both.
Lazaro, I strongly suggest that you pick up Bronchik’s course on buying Subject To. I get the courses confused now that he has changed the names. There are a ton of details not here – it’s a seminar/course really. And, for the $300 or so that his course costs, it’s a tiny investment to NOT screw up a $150,000 asset.
OK, I had a question with the paperwork for closing on a subject-to. I will state what I think and please clarify or let me know if it is correct. I would also appreciate it if you answer some questions I have.
I give to the seller as soon as I see the house and like it the sales contract, Addendum to Contract (how closing is to be done), Seller Disclosure Form, and Authorization to Release Loan Information. Now I have a question on a contract clause that I have that says “sale of real property held in trust” what do I use this for? It does not even have where to sign. I also have another clause that says “obligation Executed by Trustee” what is this also? When am I to include this in what contract? Do I make them initial? Then do I get a notary public and sign all the paper work that needs a notary? or should I wait till closing at the title company? If I do it with a notary immediately after the rest of the contract I give them the trust agreement,Trustee’s Affidavit and Certification (what is this exactly?), Assignment of Beneficial Interest in Trust,and Limited Power of Attorney.
Then at the closing at the title company do I have them sign and file the Warranty Deed and Quit Claim Deed. Do I tell the title company to check for any other liens or other mortgages on property? is title insurance needed? Do I just tell them to check title and file the warranty deed and Quit Claim Deed? Then I do the letter to the insurance and the lender and all that. Is this the correct way to approach this? If not please help. Let me know if I am missing something. Thanks for the much needed help on this subject.
Cordially,
Lazaro