You’ve probably heard about land trusts and how they can benefit you as an investor, but do you know the reasons why? Below are some of the top questions and answers pertaining to land trusts that will help you when deciding whether or not this option is right for you. Read through them carefully before making any big decisions.
The question that should definitely be answered here is what is a land trust? A land trust is a simple document detailing an agreement between the trustee and beneficiary that is designed to keep the land owner’s name off public records. This is so the public cannot access information about the identity of the owner. A tax I.D. number is not given to the land trust itself, but instead is provided to the “beneficial interest”. The “beneficial interest” could be a person or entity. This keeps just anyone who is simply curious from seeing exactly what you, the investor, actually own.
Question #2, why would you want a land trust? This is a great question to answer if you really aren’t concerned with who knows what types of property you own and how much. Still, there are times when people wish to gain access to information for reasons other than simple curiosity or to find a particular piece of property. Let’s face it, anyone wishing to buy a property from you will have most likely seen the signs or ads and know how to contact you directly concerning the possible sale. Other people, such as those wishing to delve deep into the personal information of others can conduct simple Internet searches to find out just how many properties you own and their exact locations. These aren’t necessarily people who have a vested interest in doing business with you the investor. This does not mean those searching for the information have any intent to do harm, but it does mean your privacy is compromised. Just think of the vast amount of information available via the Internet on people now as it is. It isn’t that you don’t want people to know about your properties. You do want them to if they are looking for one to buy. If not, you may wish to keep the rest of your personal and public life as out of reach as possible. This may be especially relevant with all the concerns about identity theft and other issues that can compromise one’s privacy and quality of life. Simply put, owning a land trust just keeps less information available to the public and you safer as a result.
Finally, can you own several land trusts? The answer to this question is yes. You can own several properties without making your name public on them. Taxes are still reported, but this is done by the beneficiary of the agreement. Many investors choose this method to maintain some anonymity and still sell properties.
Selling your home can be one of the biggest decisions you make. Knowing what it takes to properly list your home will help you successfully sell your home. Ensuring that your home is desirable and appealing is the best way to ensure that your home sells and gets the price you were asking. Buyers are more likely to purchase a home that appears to be well-taken care of rather than a home that appears to need some work. We’re going to offer you some helpful tips for making your home more appealing to buyers.
If you’re like many of us and are on a budget, you will need to make small improvements that will enhance the appeal of your home. These improvements don’t need to be large; they can be as easy as painting the exterior of your home or some of the larger interior rooms of your home. Fresh paint makes your home look cleaner and shows that you have taken the time to care for your home. If it is within your budget, you may also want to consider painting as many rooms as you can. Fresh paint can go a long way in attracting buyers.
Before listing your home you should also clean it from top to bottom. Nothing turns a buyer off more than an unappealing odor or having to walk through piles of clutter to view the home. This will also provide you with the chance to go through all of your belongings and clear out anything that you no longer use or need. Not only will this make your home less cluttered, you will also end up with less to move. Presenting buyers with a freshly cleaned and well-smelling home can go a long way in influencing their decision to buy or not. During the cleaning process if you happen to notice any gaps or cracks in walls or windows you should repair them. This will give buyers fewer things to focus on that wrong than what is right with the home.
Prospective buyers also base their decision on how well take care of the yard is. If they are presented with a lot of overgrown trees or bushes that they will need to take care of once they purchase the home they may decide it is not worth all of the extra work. By spending a weekend working on the yard, you can help alleviate any problem areas. Be sure to properly trim any overhanging trees and bushes. This will provide your home with a manicured look that many buyers find appealing.
Selling your home right now is not impossible, with a little work and attention to detail you can ensure that your home is one of many that realtors are happy to show to prospective buyers. If you take the time to remedy any problems before any potential buyers visit your home you are more likely to be successful when selling your home.
Once a buyer and seller have reached an agreement but prior to escrow a preliminary title report should be reviewed. It’s not a very exciting document to read, but it is something that you should give your full attention to because it can be one of the most important documents a buyer will receive. There are three key areas that a buyer needs to pay close attention to when reading a preliminary title report.
The first thing in your title report that you should pay particularly close attention to is the legal description. The legal description is a description of where exactly the property is located and the boundaries of the property. If you have purchased a condo the legal description of the unit should the property’s interest in any common areas and any exclusive or non-exclusive easements. It should also provide you details about parking or any storage space that is included in the property.
The next important part of a title report is the section that pertains to property taxes. Property taxes are commonly referred to on a title report as the primary lien. If the previous owner owes any outstanding property taxes it cannot be transferred to a new owner until the outstanding taxes have been paid either to the city or county where the home is located. It is also required that any outstanding tax balance be paid before any other debt holder on the property receives their payment. In order to ensure that the transfer of property goes smoothly, you should ensure that according to the title report all taxes have been paid on the property.
The final area that should get thoroughly read is the section referring to mortgage liens. Information regarding mortgage liens can typically be found under the property tax section. Lien holders are commonly listed according to how much money is still owed. When the sale of a house closes all of the liens on the property must be paid in the order in which they appear on the title report. If the home was a short sale, there will not be enough money to satisfy all of the outstanding debt which will leave one or more lien holders shorted. For a short sale to close, the lenders who will be shorted must agree to the lesser amount that they will receive.
As the buyer of a home it is important that you thoroughly read the preliminary title report. In order for the closing to progress problem free it is important to discover any potential problems before it is too late. If you do not understand a section of the title report, you should ask your real estate agent for help or consult a real estate attorney.
