Finding a new home can be difficult, especially in a tight real estate market. If your dream home is held in trust, the process can get even more difficult. Here's what you need to know.
What is a trust?
According to Investopedia, a trust is a legal arrangement for financial purposes where one person gives "the right to hold title to property or assets" to another person. Trusts can be used for a variety of purposes, including minimizing taxes and protecting assets from creditors. They are often used by families as parents age to help the surviving children avoid probate court.
Are there different types of trusts?
There are many different types of trusts, including:
- Living trusts. These are created during the grantor's lifetime and are often used by families to protect real estate holdings.
- Irrevocable trusts. As the name suggests, these trusts cannot be modified or dissolved without the permission of the beneficiaries.
- Testamentary trusts. Also called testamentary trusts, these come into existence after the grantor's death and are typically used in conjunction with a will.
- Charitable trusts. These are created to provide financial support to a charity or non-profit organization.
What is a trust sale?
A trust sale is the sale of property held in a trust. The proceeds from the sale are typically used to fund the trust's objectives, such as providing income for the beneficiaries or paying taxes. Trust sales can be complex transactions, so it's important to work with a real estate agent who understands the process.
How do trust sales work?
A trust sale is when the property held in trust is sold to another party. The proceeds from the sale are then distributed to the beneficiaries according to the terms of the trust agreement. In some cases, the trustee may have the authority to sell the property without getting approval from the beneficiaries first. However, this is not always the case, so it's important to check the terms of your trust agreement before proceeding with a sale.
What are the steps to buying a home that is a trust sale?
If you're interested in purchasing a home that is being sold as part of a trust sale, there are a few things you need to do:
1. Check the terms of the trust agreement to see if the trustee has the authority to sell the property without getting approval from the beneficiaries first.
2. If the trustee does have the authority to sell the property without getting approval from the beneficiaries first, contact the trustee to get more information about the property and the sale process.
3. If the trustee does not have the authority to sell the property without getting approval from the beneficiaries first, you'll need to get in touch with the beneficiaries to get their permission to proceed with the sale.
Buying a home that is being sold as part of a trust sale can seem complex, but not impossible when working with the right agents. For more info, reach out to a realty service such as Maher Probate Realty.