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The Texas T-Safe act

This topic contains 23 replies, has 0 voices, and was last updated by Avatar of gshepherd gshepherd 9 years, 5 months ago.

Viewing 10 posts - 16 through 25 (of 25 total)
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  • #32261

    I wrote an article on T-SAFE that might be helpful to those watching this thread:

    http://www.meetup.com/Texasrealestateinvestorscircle-com/messages/boards/thread/8909739/0#34993122

    It’s also reprinted on our firm’s website: http://www.lonerganlaw.com/Articles/The-Texas-SAFE-Act-and-Its-Impact-on-Owner-Finance-Sellers-and-Hard-Money-Lenders.shtml

    -Abid Hussain
    Real Estate Attorney
    The Lonergan Law Firm

    #32262
    Avatar of bill
    bill
    Participant

    The following is being posted before my reading of Abid’s article (thank you ABid for that, by the way), so let’s see if my convictions are strong enough to remain in place AFTER the reading.

    When an owner of a property places it into a land trust, there is no trust being created per-se…it is simply the act of giving the property’s ownership to a nominee for the owner’s own benefit (under no circumstances considered to be a sale or letting of the property). This is one of the nuances of land trusts that so few understand, when compared to the standard trust model.

    At the point of recordation, the owner-of-record has all control, management and direction of the property. When the deed is recorded there is no name on it other than that of the owner of record. All other documents are dated subsequently and held silently (i.e., not recorded…ever).

    In the EHT arrangement, a co-beneficiary lives in the property under a simple lease agreement, which gives him/her no ownership interest or benefits that any lessee would not have. It does not give him/her tax write-off, profit potential, equity build-up…simply Occupancy…that’s it!

    Now, as it turns out, should the occupant happens to be a beneficiary in the trust arrangement between trustee and the trust’s beneficiaries, the IRS insists that the beneficiaries have to be treated as owners of the property for income tax purposes. We didn’t create that rule: that’s just they way it is. Therefore by naming one’s lease tenant as a remainder beneficiary (in that the arrangement is beneficiary-directed) the parties “accidentally” end up having all home-ownership benefits forced upon them by the government. One’s understanding of this concept can save the day with just about any “new” or seemingly oppressive governmental regulation.

    When the real thing is gone, having a copy of it can come in handy…

    ‘Anyone ever heard of imitation crab meat or soybean hamburger? When the government says crab fishing and cow-butchering is no longer legal, knowing about these two items, can provide one with all of the protein, taste and nutritional satiation from imitation crab and soy burgers. So I ask…which is better…anabolic steroids squeezed from bull testicles (the old way) or the same molecular structures chemically synthesized from South American Yams?

    What’s the difference between having Fee Simple Real Estate Ownership, OR having all the BENEFITS of Fee Simple Real Estate Ownership?

    If someone breaks into your house and steals your TV and replaces it with an exact replica, do you call the police? Do you care?

    I’ll take the EHT exact replicas every time…and millions of bulls will be glad I did.

    Bill

    #32263
    Avatar of gshepherd
    gshepherd
    Member

    @lawyer4investor wrote:

    I wrote an article on T-SAFE that might be helpful to those watching this thread:

    http://www.meetup.com/Texasrealestateinvestorscircle-com/messages/boards/thread/8909739/0#34993122

    It’s also reprinted on our firm’s website: http://www.lonerganlaw.com/Articles/The-Texas-SAFE-Act-and-Its-Impact-on-Owner-Finance-Sellers-and-Hard-Money-Lenders.shtml

    -Abid Hussain
    Real Estate Attorney
    The Lonergan Law Firm

    How interesting to see Abid on here. Knowing of Gaylene’s attitude of landtrusts its good to see you on here. I look forward to some interesting articles and comments. See at the next TXREIC meeting.

    GS

    #32264
    Avatar of scott
    scott
    Member

    I called Gaylene’s office asking about the T Safe act and was transfered to Abid. I asked him about the law and leasing a property using a “Bill Gatten style Land trust”.

    Maybe I should call every law office in town :D

    #32265
    Avatar of scott_l._moyes
    scott_l._moyes
    Participant

    @scott wrote:

    I called Gaylene’s office asking about the T Safe act and was transfered to Abid. I asked him about the law and leasing a property using a “Bill Gatten style Land trust”. Maybe I should call every law office in town :D

    I think you failed to read or understand Bill’s post. Please read it again. We do not lease properties using a land trust.

    #32266
    Avatar of scott
    scott
    Member

    @Scott_L._Moyes wrote:

    @scott wrote:
    I called Gaylene’s office asking about the T Safe act and was transfered to Abid. I asked him about the law and leasing a property using a “Bill Gatten style Land trust”. Maybe I should call every law office in town :D

    I think you failed to read or understand Bill’s post. Please read it again. We do not lease properties using a land trust.

    I thought the trustee leased and sold the property.

    #32267
    Avatar of buzzbox
    buzzbox
    Participant

    This is difficult to grasp as it is so remarkably unique. You have to really pay attention or you can easily miss the point. Here’s my take on it, in one sentence.

    The co-beneficiary lease tenant and other co-beneficiary interest owners are not involved in a sale of the real property.

    #32268
    Avatar of scott_l._moyes
    scott_l._moyes
    Participant

    @Buzzbox wrote:

    The co-beneficiary lease tenant and other co-beneficiary interest owners are not involved in a sale of the real property.

    And there is no effective change of ownership or control.

    #32269
    Avatar of shortsaleguy
    shortsaleguy
    Member

    @bill wrote:

    … When the deed is recorded there is no name on it other than that of the owner of record. All other documents are dated subsequently and held silently (i.e., not recorded…ever).

    Bill

    I thought the DEED was recorded to “Equity Holding Corporation as Trustee for the Gatten Trust” The owner of record records a Deed to Trustee of the Trust. The county asks for the Trust Agreement to verify no change of ownership has occurred. So I am confused here. Has something changed?

    #32270
    Avatar of mtnwizard49
    mtnwizard49
    Member

    I agree you are DAZED AND CONFUSED. You need to quit posting so much since you know so little. You have probably done more to confuse new members than anyone in memory. Do yourself and everyone else a favor and disappear.

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