This article examines the use of the living trust vesting, which avoids probate supervision of a deceased owner’s estate, and distinguishes the living trust from other trusts. A review of vestings A broker is working with a prospective buyer who has decided to make an offer to purchase real estate located by the broker. The broker begins to prepare a purchase agreement. Before entering the name of the buyer on the purchase agreement in order to identify the buyer responsible for the offer and the source of the good faith deposit, the broker asks the buyer: How are you going to take title to the property? and How are you going to fund the good faith deposit? The buyer informs the broker he will take title in the name of his family trust, legally titled a revocable inter vivos trust agreement and simply called a living trust. The deposit toward the purchase price/down payment will be by check drawn on a bank account in the buyer’s name as trustee for the living trust. As a result of the trust vesting requirement, the buyer is properly told he will need to provide a copy of the trust agreement (or at least the first page) on opening escrow. Escrow will need a copy of the trust agreement for the correct name and spelling of both the trustee and the family trust...Read More
Author: ft Editorial Staff
This article reviews the handling of rent applications received from tenants with pets or liquid-filled furniture. Role of the security deposit Landlords and their property managers are frequently confronted with acceptable, prospective tenants who own pets or liquid-filled furniture. Landlords cannot automatically refuse to rent to a prospective tenant whose furnishings include liquid-filled furniture or deny an existing tenant the use of liquid-filled furniture, such as a waterbed, on the premises. However, landlords can automatically, as a matter of policy, refuse to accept all tenants who want to occupy a unit with their pet, unless the tenant is disabled and uses: a guide dog, which is a seeing-eye dog trained by a licensed person to aid a blind person; a signal dog, trained to alert a deaf or hearing-impaired person to intruders or sounds; or a service dog, trained to aid a physically disabled person by protection work, such as pulling a wheelchair or fetching dropped items. [Calif. Civil Code §54.1(b)(6)] Disabled persons accompanied by a specially trained dog must keep the dog leashed and tagged as a specially trained dog with an identification tag issued by the county clerk, animal control department or some other authorized agency. The disabled tenant accompanied by a tagged guide/signal/service dog cannot be required by the landlord to pay any extra rent, charge or security deposit for the dog to be kept on...Read More
This article presents the conduct which characterizes vested co-owners on title to real estate as owners of fractional interests in a partnership barring the transfer of any fractional interest from §1031 tax-exempt treatment. Exchanging fractional interests A group of no more than ten co-owners, husband and wife being one, acquire income-producing property. They take title as tenants in common, each with their pro rata share of “undivided ownership” based on their contribution to the down payment. The property is occupied by tenants under leases and periodic rental agreements providing for the landlord to care for and maintain the premises. A partner may use or possess partnership property only on behalf of the partnership. The co-owners orally agree: to divide annual operating income (or losses) and resale profits pro rata based on their percentage of ownership; and to hire a broker, typically the group organizer, sometimes called a syndicator, to manage the property and collect rents. Each co-owner will separately report his pro rata share of annual property operating data (APOD) – which includes income, expenses, interest and depreciation – on Schedule E of his Federal 1040. The APOD is typically provided by the managing member of the investment group, usually the syndicator who located the property and organized the group. No partnership filing will be made on a 1065, and no K-1 Forms will be used by the...Read More
Part 1: How is the Fed structured and what are its policy tools? The following is the first part in a four-part series. Special thanks to the editorial staff at the FRBSF Economic Letter for reprint permission. Reprinted from the Federal Reserve Bank of San Francisco Economic Letter 2004-01. The opinions expressed in this article do not necessarily reflect the views of the management of the Federal Reserve Bank of San Francisco, or of the Board of Governors of the Federal Reserve System. Since 1999, when the first version of this Q&A on monetary policy appeared, several dramatic developments have had an impact on the U.S. economy. On the negative side are the bursting stock market bubble, the recession, the terrorist attacks of September 11, 2001, and, more recently, the emergence of the risk of deflation. On the positive side have been continued high productivity growth and the resilience of the economy. In light of these developments and their implications for monetary policy, it seemed appropriate to update and expand this Q&A on the Federal Reserve’s tasks and how it carries them out. The revised text will appear in a pamphlet soon, and we present it here in the FRBSF Economic Letter in four consecutive issues: (1) “How is the Federal Reserve structured?” and “What are the tools of U.S. monetary policy?” (2) “What are the goals of U.S....Read More
This article discusses the concepts behind forming a limited liability company (LLC) to gather funds for the purchase of trust deeds. The need for an exempt security Forming a limited liability company (LLC) to purchase trust deeds will require some modification of the basic investment circular and the operating agreement. An offering circular for a trust deed investment requires a full disclosure of the note and trust deed to be purchased – its payment schedule, interest rate, due date and so on. A 1984 court ruling suggests the mere multiple ownership of a trust deed note is sufficient activity to create a securities risk. Also, the trust deed investment circular requires the same real estate disclosures as an investment circular for income-producing property, since the real estate is the security for the paper the group will acquire. Finally, the circular must disclose the special risks of trust deed investments on the borrower’s default, such as being forced to pay off any senior lenders or acquire ownership of the real estate on a foreclosure sale. A trust deed investment program also requires redrafting the operating agreement for the LLC. For example, the purpose provision of the operating agreement states the LLC is being formed to acquire a note secured by real estate, rather than to acquire income-producing property. Also, “spendable income” is defined differently for a trust deed investment...Read More
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- kenneth I sent my father to the va we live in.a section 8 unit im trying to leave whats the process ? – Evicting Section 8 tenants
- Jason !) Jon Loren, what you point to is way under the radar of the common agent. What you point to, however, is a profound business... – POLL: Do you believe CAR provides valuable services for your annual dues?
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- Jon Loren YOU " SOLD " OUT BROKERS & 10 Times Their Paperwork Load _> Grifted the Escrow Title business a = " FREE Ride And are... – POLL: Do you believe CAR provides valuable services for your annual dues?
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