Lein On Land Trust

If I take property Sub2 into a Land Trust, can a creditor of the original owner place a lein on the property after the Deed to Trustee was recorded?
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Comments(6)

  • DerrickAli9th August, 2004

    SwetB:

    How are you?

    Fine I hope.

    I do not believe it is very likely the could if do so...unless the Trust was/has not properly recorded.

    Hope this helps!

    Derrick Ali :-D

  • swetbak10th August, 2004

    Thanks for the reinforcement Derrick Ali.
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  • JohnMerchant10th August, 2004

    So let's see if we have your question straight: If you sell on Mon, and that deed is recorded on Mon, and then Tues a new lien is recorded against that property, is it any good?

    Right?

    If so, easy answer: NO. A lien recorded after you've conveyed & recorded the conveyance is worthless...and a title co. would probably "bond around" it and go ahead and insure the new owner's property without any serious regard for that "lien".
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  • swetbak11th August, 2004

    John,
    You are absolutely right about what I was saying. Thanks. I know it sounded like common sense, but sometimes I just have to bounce things off someone else to make sure I'm on the right page.
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  • johnbriscoe11th August, 2004

    I believe I have seen some people recommend not to record the sub-to. (To get around Due-on-sale) If it is not recorded then someone could file a lien against the property.

  • swetbak11th August, 2004

    You are correct John, if you record a deed in your(my) name. I'm talking about putting the property into a Land Trust and recording the "Deed to Trustee". The loan can't be called then. Then just have the an assignment of the Beneficial Interest to me.


    Quote:
    On 2004-08-11 14:21, johnbriscoe wrote:
    I believe I have seen some people recommend not to record the sub-to. (To get around Due-on-sale) If it is not recorded then someone could file a lien against the property.
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