Question: How To Take Title As A Land Trust
Hi All,
I'm purchasing a property in Las Vegas and I'm having the most difficult time with understanding the steps to taking title in a Land Trust .
I'm pre-approved and my lender suggests that I first take title in my name, close the deal, and then work with a attorney to transfer the title to a Land Trust.
Is it possible to take title directly as the Land Trust? I would like to avoid a paper trial with my name on it for privacy concerns.
Please break it down step-by-step for newbies, such as myself, so I can explain it to my lender.
Thanks much for your advice.
Yes you can. It is as easy as one two three.
1. Use a Warranty Deed to Trustee.
The trustee signs all the paperwork for the beneficiaries of the trust.
2. Fill out a trust agreement and get the beneficiary signatures notarized. This can be done at closing if you want.
3. Buyer on the Standard Purchase and Sale Agreement would be the name of the trust.
A good title company has no problem doing this closing.
So, are you saying lenders will typically not have an issue with completing the trust paper work in this "one-two-three" manner ?
I have not had a problem. Any other paperwork a particular attorney or title company needs, they ask for, and it usually is nothing to concern yourself with.
Not all attorney's or title companies know how to close a trust. You must do your due diligence and find out which ones do them, and don't have a problem with them.
i asked my escrow agent at chicago title in southern california and she told me i would have to take title in my own name at closing and then have an attorney transfer it into a trust.
Niravmd,
Find another title company!!
You can close with a trust. I do it and so do ALOT of other investors.
Thanks all for your help!
From this experience, I'm learning that it is possible to close with a Trust as a buyer and that finding a lender and a title company with experience with investors (and their use of Trusts) is the way to go.
This is my first home, so I'm learning as I go. I'll remember to ask about Trusts from the Lender and Title company before I start looking for my 2nd property.
Thanks all!
sunre,
who do you use for title? i've used chicago title, they're pretty big here.
Would one have to inform the mortgage company/lender that the property is being moved to a land trust with the LLC as the beneficiary? or is it transparent to the lender. :-o
:-o
:-o
I cannot imagine any title company having difficulty with a land trust, the lender might if they do the bulk of their loans in states which do not have such a provision. My advice is to ask to speak to the attny for the lender. It is entirely possible that the loan officer and/or the underwriter have no land trust experience. But the attny will understand what you are trying to do and tell the officer its ok
I know this is an older thread, but have any of you run into banks balking at you taking title into a land trust when dealing with REO's? Also when you write up your offer, do you write it up as the land trust? or do you write it up with you the investor and just do the closing into the trust?
Thanks
Joe