Land Trusts

Hi,

I am working on my first deal and need some advice. The seller agreed to put his property in a land trust and make me the trustee. The seller also assigned 100% of his beneficial interests over to me. The seller also did a PT-61 transfer of sale to me at the courthouse for $10 consideration fee. The seller stated in the land trust agreement that he only wanted $88,000 from the sale of the property. Two weeks later I found a buyer, got them pre-approved for a $120K loan and told them that I would sell the property to them for $110K. I contacted the seller and told him that I had found a buyer and that we would be closing in two weeks and now he is demanding more than the $88,000 that we agreed on. Any suggestions for how I should handle this.

Thanks[ Edited by imani2005 on Date 08/11/2005 ]

Comments(6)

  • InActive_Account11th August, 2005

    If you hold 100% beneficial interest in the landtrust, you own the property. Simply stick to the contract. Sell the property for $110k, give the previous owner $88k, take your profit and move to the next deal.

  • InActive_Account11th August, 2005

    BTW, what is a PT-61 transfer of sale?

  • JohnLocke11th August, 2005

    Darryle,

    http://www.gsccca.org/efiling/pt61/

    John $Cash$ Locke
    [addsig]

  • InActive_Account11th August, 2005

    JohnLocke

    Thanks for the link.

  • imani200511th August, 2005

    Thanks for the advice. A PT-61 is a transfer of sale document.

  • bgrossnickle12th August, 2005

    "The seller stated in the land trust agreement that he only wanted $88,000 from the sale of the property. "

    I have never seen in a land trust where you state a selling price to go to an individual. But I suppose it is possible. You need to get your paperwork straightened out on any future deals. This is a prime example. If this guy wants to push you, I bet he could get the paper work found to be incorrect. Do not mix land trusts with purchase and sale agreements.

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