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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Let me get this straight.... Posted by Gary on September 12, 2003 at 9:33 AM In Reply to: Baker's dozen I think... posted by Ward-CA- on September 11, 2003 at 8:26 PM : : : Ward, : : thanks for your great answers!! : : I have one more reagarding question one: : : -since I have not INC'd yet I will be the trustee. : : when the sellers assign their beni. intrest it will be 50% to me and %50 to my money partner. : : Should I still use my personal ssn# for the tax id section in the cert. of trust?? : : : : thanks!! : : Zachary : =================== : Zachary, : If your transaction is one where you’re taking title subject to the existing liens, then you’d be trying to avoid the due on sale clause. : In that case you’d help the seller’s create a trust titled in their surname. : At this point I used to recommend that you be named the trustee, but not anymore. Lenders now require that the seller show as the trustor and trustee of their trust. : So I arrange things that way initially and have the recorded transfer deed reflect that setup. After the seller has sent a copy to the lender and insurance company, along with a copy of the notarized Certification of Trust then the sellers execute the notarized Assignment of Beneficial Interest in Trust in exchange for your buyout of their beneficial interest. : It’s at this point that you’d then have the seller transfer the trustee position to you via a recorded deed. The sellers would be the grantor and you’d be the grantee. : It would read as follows: : “Suzie Seller, Trustee of the Seller Trust, dated 9-11-03” : hereby grants to : “Zachary Buyer, Successor Trustee of the Seller Trust, dated 9-11-03” : : Hope this helps Ward: Let me get this new arrangement straight. In a subject-to purchase: 1. Suzie Seller grants property from seller to THT with Suzie Seller as trustor and trustee. 2. Suzie Seller as trustee then grant deeds to Zachary Buyer as successor trustee with Suzie Seller remaining as beneficiary. 3. Suzie Seller sends letter to insurance, lender, and homeowner’s assoc. announcing that she has placed her property into her trust and then subsequently named a new trustee. 4. Suzie Seller then sells beneficial interest of the trust to Zachary Buyer with money and/or a note changing hands at this time. I have a couple of follow-up questions: A. Do I have the updated arrangment correct and in the right order? B. What problem does this new arrangement solve? Title? Refinance lender? New buyer's lender? C. Are there any red flags for title insurance for Zachary Buyer or his new buyer? That is, is this better, same or worse when working with title? Do I need additional docs signed by Suzie Seller? For example, do I need two Certification of Trusts (one from S. Seller and one from Z. Buyer)? D. Assuming the grant deeds in steps 1 and 2 are recorded in the right order, is there a problem that the two grant deeds are recorded on the same day? E. Can I have Suzie Seller grant property into her own trust, as in step 1 above, during the 5-day rescission period of a equity purchase contract? Thanks Ward, Gary Follow Ups: Getting straight... Ward-CA- 4:53 PM, 09/12/03 (1) Re: Getting straight... Lughead 8:36 PM, 09/12/03 (0) Post a Followup: Name : E-Mail : Subject : Comments: : : : : : Ward, : : : thanks for your great answers!! : : : I have one more reagarding question one: : : : -since I have not INC'd yet I will be the trustee. : : : when the sellers assign their beni. intrest it will be 50% to me and %50 to my money partner. : : : Should I still use my personal ssn# for the tax id section in the cert. of trust?? : : : : : : thanks!! : : : Zachary : : =================== : : Zachary, : : If your transaction is one where you’re taking title subject to the existing liens, then you’d be trying to avoid the due on sale clause. : : In that case you’d help the seller’s create a trust titled in their surname. : : At this point I used to recommend that you be named the trustee, but not anymore. Lenders now require that the seller show as the trustor and trustee of their trust. : : So I arrange things that way initially and have the recorded transfer deed reflect that setup. After the seller has sent a copy to the lender and insurance company, along with a copy of the notarized Certification of Trust then the sellers execute the notarized Assignment of Beneficial Interest in Trust in exchange for your buyout of their beneficial interest. : : It’s at this point that you’d then have the seller transfer the trustee position to you via a recorded deed. The sellers would be the grantor and you’d be the grantee. : : It would read as follows: : : “Suzie Seller, Trustee of the Seller Trust, dated 9-11-03” : : hereby grants to : : “Zachary Buyer, Successor Trustee of the Seller Trust, dated 9-11-03” : : : : Hope this helps : Ward: : Let me get this new arrangement straight. In a subject-to purchase: : 1. Suzie Seller grants property from seller to THT with Suzie Seller as trustor and trustee. : 2. Suzie Seller as trustee then grant deeds to Zachary Buyer as successor trustee with Suzie Seller remaining as beneficiary. : 3. Suzie Seller sends letter to insurance, lender, and homeowner’s assoc. announcing that she has placed her property into her trust and then subsequently named a new trustee. : 4. Suzie Seller then sells beneficial interest of the trust to Zachary Buyer with money and/or a note changing hands at this time. : I have a couple of follow-up questions: : A. Do I have the updated arrangment correct and in the right order? : B. What problem does this new arrangement solve? Title? Refinance lender? New buyer's lender? : C. Are there any red flags for title insurance for Zachary Buyer or his new buyer? That is, is this better, same or worse when working with title? Do I need additional docs signed by Suzie Seller? For example, do I need two Certification of Trusts (one from S. Seller and one from Z. Buyer)? : D. Assuming the grant deeds in steps 1 and 2 are recorded in the right order, is there a problem that the two grant deeds are recorded on the same day? : E. Can I have Suzie Seller grant property into her own trust, as in step 1 above, during the 5-day rescission period of a equity purchase contract? : Thanks Ward, : Gary Optional Link URL: Link Title: Optional Image URL: [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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