Cost of the Title Holding (Land) Trust System
There are three options…
1) Do it yourself . . .
If you want to find a place where you can become educated about land trusts in all 50 states, and have access to standard forms so you can put them together for yourself, then I recommend that you check out what these guys have to offer:
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2) Use Bill Exeter if you just need a land trust set up so you can take title to a piece of property.
If you are not using the land trust to coordinate a property transfer between unrelated parties, and are simply using them as a way to hold title (land trusts hold title to everything I own), and you don’t want to do it yourself, then call Bill.
Find Bill at Exeter 1031 Exchange, and tell him I said ‘hi’. I think he charges about $700 to put a trust together for you, but don’t hold me to it.
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3) The charge for using the proprietary multiparty trust system is no more than (and often less than) it costs to get a loan from the bank:
$1,950 + 1% of the ‘mutually agreed value’ (with a minimum of $2,500 and a maximum of $10,000)
This is for high-end properties and complex transactions and includes:
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simple land trust
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beneficiary agreement
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assignment of beneficial interest
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occupancy agreement
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any relevant addendums/riders specific and unique to the particular transaction
I have a team of processors (which includes attorney review) that
keep the paperwork cohesive and up to date with current statutes and evolving case law.
Additional costs will include:
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escrow (approx $1,000 – this is much cheaper than a traditional escrow transaction)
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title insurance (unless the seller’s existing policy covers assignment to a trustee)
I will also be able to recommend a trustee that is familiar with servicing these bill-paying trusts, and their monthly fees range from $40-$140 per month based on the value of the collateral.
Sellers frequently want help knowing how to translate their intent into the language of the trust, as it is much different than the familiar purchase contract.
That’s where I come in. Think of me as your Universal Translator. I take what I know you intend and make sure the documents reflect it.
Clients (and their Realtors) are happy to have help avoiding unexpected and unpleasant ‘surprises’ because they didn’t know all of the right questions to ask up front. Unless you’ve done a lot of these, you need help in expertly navigating the many points of negotiation, and you don’t want to inadvertently structure the transaction in a way that compromises it’s ability to offer the benefits we’ve described.
Don’t waste any time compiling the documents we’ll need to put your land trust together.
