Wednesday, April 13, 2011

Real Property Held in Trust and How it Affects A Transaction Involving That Real Property

If real property is held in trust, it is imperative to determine the validity of the trust and how it pertains to the transaction at hand.  A copy of the original trust agreement must be obtained and reviewed.  To determine if it is a valid trust for purposes of the real estate transaction, here are some things to look for:

• Name of trust

• Named trustees

• The trust is revocable

• The borrowers are the settlors and the beneficiaries of the trust

• If sale, trustee has power to sell real property and remove property from the trust

• If refinance or purchase, the real estate owned by the trust may be used as collateral for a loan

• The trustees are authorized under the trust to encumber the subject real estate

• The trust appears to be validly created and is duly existing under KY law, document is signed and notarized

3 comments:

  1. I reside in California. I don't wish to be burdened any added than I already am today. At the aforementioned time I would say that I’m ok with paying taxes, as continued as the casework getting provided to me are satisfactory or good.

    Real Estate Management

    ReplyDelete
  2. If transferring property out of a trust requires the permission of the trustee. Here above all topics necessary for transaction involving that real property. Everything is perfect.

    midlothian va real estate

    ReplyDelete
  3. This is such a great post, and was thinking much the same myself. Another great update. Immobilien Soegel

    ReplyDelete