Living Trust - Sale Of Property?
looking at buying a property that is in living trust currently. Seller being told has to sell for latest comparables appraisal and not able to sell for less. sale will be going to a family member, which would receive 50% as heir if living trust owner passes away. can the owner/seller sell for the difference? or a note carry back with provision for note balance to be considered paid in full (balance eliminated) at death of note holder (owner of living trust)
ie: property at 225k comparables appraisal--sale as 225k as follows-125k cash with 100k interest only note, and note balance to be eliminated at death of note holder.
First - you should consult an attorney or at the very least a very knowledgeable title person .... as I am just flapping my gums.
If I remember correctly, there are two parts to a living trust - one part is the right to occupy and the other part is the right to inherit (maybe not the correct word - maybe residual is the correct word). So you could buy out the right to inherit or you could buy out the right to occupy or you could buy out both. If you were going to purchase the property I believe that the living trust would have to be modified prior to your purchase.
So you could offer the right to occupy guy a 100k note and the right to inherit guy 125k cash and stipulate that they must be be closed simultaneously. It sounds like the right to inherit guy just wants to make sure that he is not taken advantage of. Explain that the occupy guy wants to carry a note - it is very common especially with older people.
Brenda