Two Names On The Note.
Myself and my partner are in the process of setting up a hard money loan, this would be the second loan secured by Trustor's property. Everything was going through Title company, but at the last moment, the Title company advised our broker, that they can not insure Title with multiple (unmarried) beneficiaries on a loan. Broker suggested to bypass Title company and go through his Trust. Please advise.
[ Edited by agabovich on Date 03/16/2004 ][ Edited by agabovich on Date 03/16/2004 ]
I'm not at all familiar with title insurance (as it is illegal in Iowa) but you might try setting up a partnership or LLC and see if it can be the beneficiary of the loan. There is obviously extra paperwork but may solve your problem. Just a thought.
Good luck!
You should check the state laws. I wouldn't buy a property without title insurance. I have never heard of such a thing.
Lori
[addsig]
Yeah, I never heard of it either but its not a problem.
Options, there are always options.
I think California is a land trust state, establish a land trust with you and your partner as beneficiaries. Not a bad idea anyway
establish a S-corp or a LLC and buy the property in the name of that entity.
Brokers trust still has to provide title insurance from an ALTA approved company.
Are you sure the title co. actually has this rule? In other words, do you have anyones word on this other than the broker who might be stearing business to his Trust?
Mark
Thank you for everyone's reply. We have just closed on this note with a Title Company that did not have a problem with insuring multiple (unmarried) beneficiaries. I guess if one company doesn't do it, you find the one that would.
Alexander