I am doing short sale flips in CA. I have been recently introduced to using Family Trust.
I wanted to get other investors advice,opinions,tips, when having the seller put the property in a trust, then flipping it to C buyer.
THE SAN DIEGO SHORT SALE KID
I could always be wrong but without consulting council on a Saturday night I am going to take a shot at this from memory and my memory of course is not up to date with the current state and federal laws!
I believe that a Family Trust or Family Living Trust is not transferable and that the Settlor can only sell or change assets by removing them from the trust! A trustee or Co-Trustee can be named to disperse assets to beneficiaries upon the Settlors Death or Incapacity upon written instructions.
I believe a Family Trust or Family Living Trust is not transferable as it is Settlor Specific and is written for an individual or group of individuals to disperse assets upon death! A Family Trust or Family Living Trust stays permenently attached to the Settlor or Settlors, and can only be transfered to beneficiaries upon death!
This is not a stand alone trust and does not carry the same rights!
I believe you are correct. California probably has some state law regarding that as well (when don’t they have extra laws in place?). A good (free) resource to try would be a local university student. Could probably get all of your questions answered without having to pay a real estate attorney.
I have flipped many deals using a trust. It does help with C buyer seasoning issues and you can get paid the very same day. I have attorneys and escrow companies who can do this for me in place in CA. This also resolves any resale restriction put on the approval letter. THis is a beautiful system!!!