Posted by Mike,OR on June 27, 2001 at 16:23:42:
Sweet words…
“contingent on verification of all info given by the seller” that would give one the chance to back out. I’ll use that!
Thank you Jim for helping out with my loose ends!
Subject to-what to record and not to record? - Posted by Mike,OR
Posted by Mike,OR on June 26, 2001 at 13:23:39:
Trying to get this clarified (once for all)…when taking Subject to using a Land Trust.
The Land Trust IS recorded with me as a trustee
The Transfer of Deed is NOT recorded.
The Assignment of Beneficiary Interest is NOT recorded.
Will the Land Trust create “enough cloud on title” to stop a “behind the scene” more benificial transaction for the seller?
Help is truly appriciated!!!
Alright…so here is the checklist…Any inputs? - Posted by Mike,OR
Posted by Mike,OR on June 26, 2001 at 18:04:58:
Thank you all!!!Let me know it I have missed any step!!
Taking Subject to using a Land Trust
1st meeting successful & terms agreed upon.
Check Title
No cash & no title insurance ordered- close at kitchen table. Cash & or title insurance- close at attorney or title office.
If Cash deal- have a cashiers check ready
Prepare Purchase & Sale Agreement for signing (Warranty Deed if poss.)
Prepare Declaration of Trust for signing
Prepare Assignment of Beneficiary Interest for signing
Prepare Limited P.O.A for signing
Prepare Authorization to release loan information
Notary “On-call” is present for meeting
Sign Purchase& Sale Agreement
Sign Declaration of Trust-naming My Company as “trustee” and seller as “grantor”
Sign Assignment of Beneficiary Interest -naming My Company as “Assignee”
Sign Limited P.O.A.
Sign Authorization to release loan information
Get Mortgage coupon book or monthly statement
Set up a 3rd party escrow with escrow or collection agency if requested.
Sign CYA letter (Due-on-sale acknowledgment)
Get Sellers insurance company, phone and fax number
Get the Keys to the house
Record the Warranty Deed
When contacting Insurance company: Inform them that a new policy needs to be written because a Land Trust has been written. Ask them to use the words “My Company, Trustee of the 123 Somewhere St. for the benefit of Joe Seller” Fax Declaration of Trust and P.O.A
Change address form on Mortgage coupon book or monthly statement
Re: Subject to-what to record and not to record? - Posted by JoeKaiser
Posted by JoeKaiser on June 26, 2001 at 17:06:55:
This arrangement doesn’t “cloud title.” It transfers ownership outright. It would be tough for them to sell a property they no longer own.
Joe
Re: Subject to-what to record and not to record? - Posted by Terry (Houston)
Posted by Terry (Houston) on June 26, 2001 at 16:42:02:
Land Trust is not recorded. You would not want everyone to know what the terms are would you? Although I seem to recall that some states require it to be done so check it out.
The Warranty Deed to Trustee is recorded. That should be all.
Yes that should cloud you well enough.
Get the other doc’s as well, POA, etc…
First things first… - Posted by David Alexander
Posted by David Alexander on June 26, 2001 at 19:54:56:
Get a signed contract and loan authorization form in the beginning. Then and Only then does anything else start. Otherwise you’ll spend all your time doing paperwork for nothing.
Once you have a deal, check your comps, check title, or order your title insurance, and start preparing the paperwork if not having a title company do it.
David Alexander
sure, one thing I can see - Posted by Jim IL
Posted by Jim IL on June 26, 2001 at 18:34:25:
Mike,
Frankly, it seems that you are making this a little more complicated then it needs to be.
But, what you have should work alright.
There is only one thing I’d change right away, and that would be to make getting the purchase and sale agreement signed FIRST.
This way the seller is bound to sell to you.
Of course this does not mean that some may try to weasel out of it, but after the deal is signed, then you can take care of the details.
I always get that first and then tell the seller, “I will verify all the info we have gathered here, and prepare the closing docs, when can we meet to get this all taken care of?”
HTH,
Jim IL
Re: Subject to-what to record and not to record? - Posted by Mike,OR
Posted by Mike,OR on June 27, 2001 at 13:56:26:
Thx!
Re: Subject to-what to record and not to record? - Posted by TRandle
Posted by TRandle on June 26, 2001 at 17:35:55:
TW,
Or you can just record a General Warranty Deed made out to the trust if you’re in Texas. Alexander and I are still trying to figure out the pros and cons to both methods, but if I don’t have to list a trustee, I’m not going to until I see a significant downside. Thoughts?
Re: First things first… - Posted by Mike,OR
Posted by Mike,OR on June 27, 2001 at 13:44:55:
That makes sense…and if I’m doing work for nothing then I’m back at my old work…YIKES!
I’ll change the checklist/ thanks a bunch!
Re: sure, one thing I can see - Posted by Mike,OR
Posted by Mike,OR on June 27, 2001 at 13:54:47:
HA-ha!
I’m probably making it ALOT HARDER THEN NEEDED, but I’m green and want to get all the steps down so I have something to lean on. But…if you sign P&S first and find liens on the house that needs to be cured…How do I approach that? Am I not commiting myself without knowing what I’m getting (kinda’ like bying a pig in a blanket…pardon the tacky expression)? I do not want to end up with any loose ends(which = loosing $)!
Re: Subject to-what to record and not to record? - Posted by Terry (Houston)
Posted by Terry (Houston) on June 26, 2001 at 18:02:55:
Yes I saw that,
One thing I do is the
John and Sue Doe Trust
address:
C/O Terry Wygal Trustee
123 main street.
etc…
I am curious as to how this works out on your closings.
Let me know
Re: sure, one thing I can see - Posted by Jim IL
Posted by Jim IL on June 27, 2001 at 14:19:54:
Mike,
When you get the agreement signed by the seller and you, just add a clause in it that states the deal is contingent on verification of all info given by the seller, clear title, and whatever else you can think of.
I always tell my sellers that the deed will not be recorded and we will not close the deal until all of this is done.
Since most just want out anyway, they are happy to comply.
This way, you have the deal locked up, and a way to walk away if you find anything that could kill the deal.
Obviously you want to complete your due diligence as quickly as possible, and get the deed recorded.
HTH,
Jim IL