Home › Forums › General › EHTrust/EHT Topics and Creative Real Estate Financing › Seller wants to choose the trustee
February 11, 2009 at 1:39 pm #5456
I suggest that you look over this page carefully before you proceed and discuss your concerns with the seller. He/she will not have this information.February 11, 2009 at 9:36 pm #28531
i think there will be a potential liability if you let them choose their own trustee. one of the biggest is the trustee can do whatever they want with the property and that means exclude you from the transaction. all they have to do is produce an affidavit of trust. i know there is a trust agreement but what can you do if they spend up all of your profits?
if your seller wants their own trustee either they are not motivated or they have a plan to black ball you or they don’t trust you. you have to find out why they want their own trustee and then you will find what their true intentions are.February 11, 2009 at 10:19 pm #28532
i think there will be a potential liability if you let them choose their own trustee. one of the biggest is the trustee can do whatever they want with the property and that means exclude you from the transaction. all they have to do is produce an affidavit of trust.
Wrong again, Get Smart. Please don’t give advice if you really aren’t truly knowledgeable on the topic. It confuses people. We use a Land Trust, not any other kind of trust which may allow the Trustee such flexibility.
This is direct from our Trust Agreement:
Powers and Duties of Trustee: So long as the trustee is the sole owner of record of the real estate and any other property held by it under this Trust Agreement, it is understood and agreed . . . that the Trustee will deal with the property only when authorized to do so in writing by all of the Beneficiaries.February 11, 2009 at 11:53 pm #28533
… the Trustee will deal with the property only when authorized to do so in writing by all of the Beneficiaries.
Now all the beneficiaries are bound by contract so then will direct the Trustee in the same manner at the same time I presume? This has scared some of my landlord contacts. They think they are losing control and will not be able to reconvey, hypothecate, cross collateralize, sell or rent the property. This may have been brought up before but worth addressing again.February 12, 2009 at 12:00 am #28534
wiz if they use their own trustee anything can happen, i am not referring to your trustee. a trustee that is on title is what an end buyer sees, they don’t see the trust agreement. is there some sort of deed restriction that prevents the trustee from doing such? as i said if they provide a notice of trust that is usually all that is needed to sell a property from a trust.February 12, 2009 at 12:02 am #28535
wiz do you think this is a perfect world? the speed limit on the highway says 60 mph but you can sit on the side of the highway and watch a driver speed by doing 80.
your trust program is stronger when you use a nars trustee not just some random trustee that can go against the agreement, which is possible and will likely happen if a random trustee is chosen.February 12, 2009 at 12:43 pm #28536
If this was a perfect world, you’d know how to capitalize and properly punctuate a simple sentence, Dante.
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