I called title insurance companys and they don’t seem to realy know what a land trust is, whats the diff between that and a land contract
Also do you have to get title insurance when doing sub 2 or does this get back to lender? Also if so who pays for it?
they said it’s about 500 bucks just for that
And does changing fire insurance realy trigger due on sale clause? or is this ok? I’ve been a real estate student for years and bought all the courses but when ever I think I can do this I always find out theres somthing elts that will have to come out of pocket and Im dead broke with no job please help! Brad K
A land contract is typically a contract for the deed when you complete your obligation under the contract. If you are in Texas you do not want to sell that way as an investor. Several years back there was a new law that made many changes.
If you have little or no money at risk then you do not need title insurance. You still need to check title to find problems that may exists when you get ready to sell.
Changing insurance can call attention to something. But what- that they put title into a land trust for estate planning purposes. Change the insurance to be a rental dwelling policy and add the trust as an additional insured. At the next anniverary date of the insurance change to a policy that is owed by the trusted and list the mortgagee as an additional insured “as their interest may appear.”