Sale of a home held in a trust

By
Real Estate Agent with Alain Pinel Realtors CalBRE#00979900
https://activerain.com/droplet/ncm

 

 

Sale of a Home Held in A Trust


 

A sale of a home held in a trust is very common.   As an estate planning technique, many people have put their assets, including their homes, in a trust.  The trust then becomes the owner of the home.  This is usually done to protect the estate from a probate, a costly and public court proceeding.  

 

A sale of a home held in a trust may have certain requirements.  Even though trusts are not controlled by the courts there are rules that must be complied with.   The attorney who will be doing the trust administration will advise the family what must be done. 


 A sale of a home held in a trust will necessitate that an agent request a property profile which will show that the property is, indeed, held in a trust


If the owner of the home has passed away, the successor trustee must be identified because that person will be the person who may sell the property.  The trust will identify the name of the successor trustee.  That person may be the remaining Trustor spouse or an individual appointed by the original Trustors. 


According to Placer Title Company, a title company may require certain trust documents to be provided to them: 

  1. The title company may ask to see the trust to verify that the person who is acting as trustee is actually named in the trust.
  2. The title company may require a Certification of Trust signed by the successor trustee(s) and the attorney for the trust estate.
  3. The title company may require a death certificate if the original Trustor(s) is/are deceased.
  4. If the trustee is incapacitated, the trust will govern the succession of trustee(s).
  5. If a trustee resigns, the title company may require an acknowledgment of resignation.
  6. A Tax ID number may be needed if the original Trustor(s) is/are deceased.
  7. Disbursement of funds at close of escrow must be issued in the name of the trustee of the trust, so a trust account must be opened to receive funds.
  8. Questions may arise if a power of attorney may be used in the sale of trust property.  According to Placer Title Company, "Unless the trust specifically provides that the trustee can appoint an attorney in fact, a power of attorney cannot be used."  

This information applies to Alameda County, California.  Other areas may have entirely different rules.  The Successor Trustee should consult with an attorney in the area in which the property is being sold.  I am not an attorney and do not give legal advice.


Sale of a Home Held in a Trust requires an experienced Realtors.  If you have any questions about selling a home which is in a trust, call me at 510-504-5612

 

 

 

close

Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
  1. Gene Riemenschneider 12/30/2011 07:04 AM
Topic:
ActiveRain Community
Location:
California Alameda County Alameda Bay Farm Island
Groups:
Alameda California
San Francisco Bay Area Real Estate
Diary of a Realtor
Voice of Reason
HyperLocal Neighborhood and Community Posts
Tags:
title company
trusts
home is alameda
sale of a home in a trust

Post a Comment
Spam prevention
Spam prevention
Show All Comments
Rainer
482,868
Chandler Real Estate Liz Harris, MBA
Liz Harris Realty - Chandler, AZ
#ChandlerRealEstateAgent

Terrific summary of the required documents when a home is held in trust!

Nov 16, 2011 03:27 PM #1
Rainmaker
145,233
Rick Irving
My Texas Home Real Estate - Fort Worth, TX
Rick Irving Knows Real Estate

Thanks for the good information! It looks like you have done your homework!

Rick

Nov 16, 2011 03:52 PM #2
Rainmaker
1,763,811
Tom Arstingstall, General Contractor, Dry Rot, Water Damage Sacramento, El Dorado County - (916) 765-5366
Dry Rot and Water Damage www.tromlerconstruction.com Mobile - 916-765-5366 - Placerville, CA
General Contractor, Dry Rot and Water Damage

Important information Evelyn. These transactions can be difficult for those left behind. good to know that there are people who can handle this sort of thing.

Nov 16, 2011 04:27 PM #3
Rainer
396,518
Cathy Criado
Criado Realty - San Antonio, TX
Making Real Estate Profitable

Well Evelyn, I'll have to just trust you when it comes to real estate expertise. Great information indeed. You're my go to gal in Alameda CA.

Nov 16, 2011 06:08 PM #4
Rainmaker
809,907
Evelyn Kennedy
Alain Pinel Realtors - Alameda, CA
Alameda, Real Estate, Alameda, CA

Liz:  Thank you.  I appreciate your kind words.

Rich:  I have and I have also sold a lot of properties which were held in trusts.

Tom:  With a Realtor who has sold trust properties and an estate planning attorney, the sale will go smoothly.  Thank you for your comment.

Cathy:  You are so sweet.  Thank you very much. 

Nov 16, 2011 06:25 PM #5
Rainmaker
1,514,694
Brian Madigan
RE/MAX West Realty Inc., Brokerage (Toronto) - Toronto, ON
LL.B., Broker

Evelyn,

Increasingly, trusts are becoming more popular in Ontario. While our laws are different there are still some imporatnt similarities.

Brian

Nov 17, 2011 07:28 AM #6
Rainmaker
809,907
Evelyn Kennedy
Alain Pinel Realtors - Alameda, CA
Alameda, Real Estate, Alameda, CA

Brian:

Yes, a lot of people are using trusts to avoid probate.  Essentially, a sale of a home in a trust is routine.  In California, Trustees are exempt for some disclosures which is good because the trustee know nothing about the house.  I hope you are having a nice day in Ontario. 

Nov 17, 2011 09:24 AM #7
Ambassador
1,470,825
Toni Weidman
Sailwinds Realty - Trinity, FL
20+ Years Selling Homes in New Port Richey, FL

In Florida, Evelyn, the death certificate must be recorded along with the trust docs at the sale.

Nov 17, 2011 10:27 PM #8
Rainmaker
809,907
Evelyn Kennedy
Alain Pinel Realtors - Alameda, CA
Alameda, Real Estate, Alameda, CA

Toni:

One of the good things about California, it does not require the trust to be recorded.  A document called a trust transferred deed is recorded with a death certificate.  Thanks for your comment and have a nice weekend.

Nov 18, 2011 03:51 AM #9
Ambassador
1,497,330
John McCormack, CRS
Albuquerque Homes Realty - Albuquerque, NM
Honesty, Integrity, Results, Experienced. HIRE Me!

Hi Evelyn - An outstanding post of some the requirements of selling a home in Trust.  Great  job!

Nov 19, 2011 09:31 AM #10
Rainmaker
809,907
Evelyn Kennedy
Alain Pinel Realtors - Alameda, CA
Alameda, Real Estate, Alameda, CA

John:

Thanks so much for your nice words about my post.  Not very interesting subject, but we will all have to deal with selling a home which is held by a trust at one time or another.  Best to know what to do.  Have a great weekend or what's left of it.

Nov 19, 2011 11:11 AM #11
Ambassador
1,553,031
Karen Kruschka
RE/MAX Executives - Woodbridge, VA
- "My Experience Isn't Expensive - It's PRICELESS"

Evelyn -  Arthur and I just stopped by to wish you and your family a very Happy Thanksgiving

Nov 23, 2011 01:23 AM #12
Rainmaker
809,907
Evelyn Kennedy
Alain Pinel Realtors - Alameda, CA
Alameda, Real Estate, Alameda, CA

Karen:

Same to you.  Have a great turkey day.

Nov 23, 2011 03:41 AM #13
Ambassador
1,508,812
Renée Donohue~Home Photography
Savvy Home Pix - Allegan, MI
Western Michigan Real Estate Photographer

Great information on selling a home held in a trust!  They are VERY common here in my market!

Nov 23, 2011 11:29 AM #14
Rainmaker
2,783,205
Kathleen Daniels
KD Realty - 408.972.1822 - San Jose, CA
San Jose Homes for Sale-Probate & Trust Specialist

Evelyn, Placing assets (property) in a trust is a wise estate and financial planning.  Contacting an experience Realtor to assist in the sale is also very wise.  It's important that the escrow officer also knows how to propertly execute the sale of property held in trust.  Wishing you a very Happy Thanksgiving!

Nov 23, 2011 12:34 PM #15
Rainmaker
809,907
Evelyn Kennedy
Alain Pinel Realtors - Alameda, CA
Alameda, Real Estate, Alameda, CA

Renee:  Thank you for your comments on my blog.  Yep, they are common here too.

Kathleen:  Luckily we have several title companies who have handled hundreds of sales of properties held in trusts. 

Nov 23, 2011 03:33 PM #16
Rainmaker
1,488,078
Inna Ivchenko
Barcode Properties - Encino, CA
Realtor® • Green • GRI • HAFA • PSC Calabasas CA

It is important that a listing agent, an escrow and the title company know what they are dealing with. In California we use a Trust Listing Agreement,  a Trust Advisory , a Trust Signature Addendum along with a regular Residential Listing Agreement.

Apr 29, 2014 05:22 PM #17
Rainmaker
809,907
Evelyn Kennedy
Alain Pinel Realtors - Alameda, CA
Alameda, Real Estate, Alameda, CA

Yes and in most cases the title company has had a great deal of experience with sale of homes held in a trust.  Maybe I should update my blog to include the information about Trust Advisory and Trust listing agreement and Probate Advisory and Probate listing agreement.  Thanks for your comment.

Apr 30, 2014 01:44 AM #18
Rainmaker
1,488,078
Inna Ivchenko
Barcode Properties - Encino, CA
Realtor® • Green • GRI • HAFA • PSC Calabasas CA

Evelyn,

I think it is a good idea to write another blog with a link to this one with more details on a trust sale. Many realtors have no clue what to do when they hear that the property is in trust( only regular RLA will not do the job:)

May 01, 2014 04:47 PM #19
Rainmaker
809,907
Evelyn Kennedy
Alain Pinel Realtors - Alameda, CA
Alameda, Real Estate, Alameda, CA

Thanks Inna:

I will do that next week when I can find a minute to update my blog.  I do a lot of sales from a trust, probates and conservatorships sales in the San Francisco Bay Area.  So if you have any questions, please do not hesitate to call me at 510-504-5612.

May 02, 2014 02:07 AM #20
Post a Comment
Spam prevention
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Rainmaker
809,907

Evelyn Kennedy

Alameda, Real Estate, Alameda, CA
How can a find a home in Alameda
*
*
*
*
Spam prevention

Additional Information