How Should I Do This?
ok heres the deal.
Im buying Rehab property sub2, and taking title in land trust, without recording my beneficial interest. i have done a pretty thorough title search and nothing interesting came up. but since im going to be putting a good amount of money into the rehab i would feel much better though if i had a title policy. and heres my question, if i get a title policy will it be recorded and wouldnt that defeat the purpose of putting the property into trust? or would it be the trust thats getting the policy and not me, therefore keeping the anonimity?
thank you to anyone who can answer my complicated questions.[ Edited by ZinOrganization on Date 02/20/2005 ]
because shouldnt there already be a title policy with the old owner, and by getting a new policy wont it look like title has changed when i want it to look like the previous owner still owns it.
kinda confusing.
you could pay for a title abstract, or title search, and not bother to purchase the policy.
This may give you a better peace of mind.
Jeff
thanks jeff i was thinking about doing that as an alternative. im going to talk to my lawyer tommorow and see what he recomends anyways, probably whatever will earn him money lol.
just wondering what others experiences were, in the same situation.
go rehab duplexes
Firstly, ALWAYS get a title report. PERIOD. Never do your own title work. PERIOD.
I need some clarification: You are going to take title in a land trust W/o recording your beneficial interest? Do you mean you have an existing land trust that you are going to take title in? Why is that? Why not just take it in your name and record? You are wise to do EXACTLY that (record and get out of sellers name to avois any future lien problems) but I fail to see any benefit in a land trust in this application.
Whatever you do, do NOT change the insurance policy on the property from the seller tot he lender. Add an additional policy for your interest.
Im wondering why you say "never do your own title work PERIOD" obviously im going to go and see what leins are on the property before i even start negoitiating with the seller PERIOD. after you do this enough times you start to get good at it.
about the trust. the whole purpose of the trust is to hide transfer of title. so therefore if i recorded the rest of the trust with my beneficial interest it would defeat the whole purpose of putting the house into a trust, and yes in that case i would be better off taking title in my LLC. but my question was not weather to use a trust or an LLC, but how to get title insurance with a trust, or does the previous owners exsisting policy remain in place therefor i wouldnt need it. i dont know?
i also believe that once the house is deeded into a trust it is protected from certain leins? dont know if thats correct or not?
your answer regarding leaving one insurance policy in place and getting another makes me wonder if you have done it a different way and it didnt go good or what? dont know if youve heard of the excess clause that most policies have?
anyway my question still stands about getting title insurance in a trust.
im not saying i go and do a full blown title search before talking with the seller, but i do want to know what my negotiating point is at, especially if the seller is not being truthful about what they owe. as for work ethic, to each his own.
yes i do think i should get title insurance, thats why im asking anyone who has done it via trust to let me know how its done?
i may just take title in my LLC seeing it wont be as much of a hassle.
first off, thank you for taking the time to respond to my post.
secondly my defensive attitude was towards your rather uninformative first post. "dont search title PERIOD" i didnt really enjoy your "holyer than though" attitude. and my question wasnt regarding weather i search title or not. u were completely off topic. and then telling me i better not touch the insurance policy, when all i have heard on this board from people who are experts is that there is a excess clause when getting two policies. i simply asked you if youve ever heard of it, and what your take was on that.
my original question was on getting title insurance for a land trust and how to do it. and you made no attempt to answer that question. you only questioned my methods and why i would do a title search myself. obviously you are on a different level then me and can afford to take home owners words for the truth. i simply dont like to take that risk.
if i am capable of searching title myself and it only takes a half hour out of my time then i damn well will. sorry if i dont feel like spending the 150 bucks to have it done "professionally" before i know what im getting into.
if you all you want to do is question me, and my methods and have nothing informative to give then you are wasting your time responding.
oh by the way, your welcome. [ Edited by ZinOrganization on Date 02/25/2005 ]
i think you should probably refrain from posting all together. because obviously your not here to give informative replies only to critisize people. if you have poor work ethic and dont like to eat your own cooking then thats up to you.
but like i said if you want to tell someone how to do something and not point out potential pitfalls of that method then not only are you being ignorant but that tells me that someone with 25+ years of experience who doesnt know that hes doing something the wrong way, better get some more experience.
and why would you tell me to take title in my personal name? are you serious? 25+ years huh.
i didnt ask you for a thank you, only clarification. which you obviously cant provide.
[ Edited by ZinOrganization on Date 02/26/2005 ][ Edited by ZinOrganization on Date 02/26/2005 ]
there is no title company/lawyer in my town that can get title done for less than 100$ and it takes 3-5 days to get back usually the later. now unless you own a title company or know the owner personally then you aint paying no 50 bucks around here. your talking about wasting time, well i dont have 3-5 days to waste for some so called "professional" to do a preliminary for me. that i call a wast of time.
Just my two cents worth, but $100 seems miniscule to what you would lose, if you miss something on the title. Just my humble opinion.
P.S. we dont have "title companies" we have Lawyers and most of the lawyers around here have never even heard of a Land Trust
thanks Andy - like ryan said we have lawyers instead of title comapnies in CT. but i did talk to my lawyer and he said that its kinda odd to get a title policy with a trust because there is already one in place, with the previous owner. i guess it kinda defeats the purpose of the trust because you want to hide the fact that you took title. he said basically i dont need it but its always good to get. so i really couldnt figure out what he meant by that or what his take was on it.
thanks for bringing up the excess issue with title insurance, melj had gotten me side tracked on that issue with home owners insurance when i didnt even mention it in my post so i was curious what he thought. since he brought it up. but yes that brings up a whole new issue of weather getting a new title policy would overlap the current one with the old owner, especially if im not recording my beneficial interest in the trust.
thanks again. i guess i need to talk with a Land Trust Guru somewhere out there.
[ Edited by ZinOrganization on Date 03/01/2005 ][ Edited by ZinOrganization on Date 03/01/2005 ]
i am a land trust Guru..what would you like to know?
i dont think he knows much about land, and as far as trust goes i definetly wouldnt trust him. lol
so i guess that wouldnt make you a land trust guru after all. unless hes been taking time off from proffessionaly riding dirtbicks aimlessly around in the woods, to studying land trust law.