Irrevokable Living Trust instead of purchase

I am trying to sell my house and I have found a company that wants to do an Irrevocable Living Trust instead of purchasing my property.

I sign the DEED over to the Trust but my name remains on the NOTE until the property is sold.

At the time of sale the Trust would get any profits.

This will allow me to move and not pay any fees.

My questions are:-

  1. How common is this?
  2. How can I be sure they will make my payments on time and not ruin my credit?
  3. Can I trust the Trust, or who ever want to make this deal?
  4. Is this too good to be true?
  5. Is there anything I should be aware of or look out for?

Thanks for your help.



Glad to meet you.

What you are describing in one of several creative ways to sell your property when other conventional methods won’t work for your situation.

Actually the creative method of selling is in use every day thoughout the US, some of the methods are Subject To and Lease Option along with the Trust method.

I think that the important thing is if you need to sell creatively you choose someone who has credibility in our industry. Ask the person who wants you to deal with them for recommendations from others they have helped, this should not be a problem, if it is then they do not deserve your “trust”, let alone using their Living Trust.

Bottom line due your due diligence on anyone who presents you with any offers to purchase your property creatively.

John $Cash$ Locke

"If people like you they’ll listen to you, but if they trust you they will do business with you.

You have be very careful when selling “creatively”. Many of the methods are legitmate, many of the people using the methods are not. The longer & more convoluted the document that you are asked to sign, the more likely there’s some “fine print” that will hurt you down the road. Sounds like you are dealing with a PAC Trust…not my favorite way of doing things. In deciding whether to enter into the arrangment, I’d suggest:

  1. If you can sell for cash and have the time to wait fo such a sale, so so. In other words, if you are not a “motivated seller”, you do not need to enter into “creative” arrangements UNLESS there is a CLEAR and TANGIBLE extra benefit & little or no risk to you.

  2. Understand what is being offered THOROUGHLY. If you do not understand something in the agreement, get clarification, preferably from a lawyer or from the seller in simple language and IN WRITING. You need to know what happens if things do NOT go right. Who ultimately bears the risks if things go South? If the answer is “you do”, then the deal is a “heads I win, tails you lose” proposition. Do not accept oral guarantees - they are worth the paper that they are written on. Also, if the buyer seems kind of clueless (obviously reading from a script, cannot or will not answer questions), do you really want to put your economic fate in their hands? Creative selling can and does work, but it can be dangerous if you do not clearly understand the risks entailed. Get clear, written information and trust your gut instincts.

John Hyre
Attorney, Accountant, Investor