This article discusses the preparation and use of the Instruction to Trustee to Fund Acquisition.
Analyzing the Instruction to Trustee to Fund Acquisition Form
The Instruction To Trustee to Fund Acquisition, first tuesday Form 173-3, is used by an investor or businessman (the seller), who has sold property and caused the sales proceeds to be received and held by the trustee, to instruct the trustee to fund the purchase of replacement property as authorized by the Declaration of Trust under which the trustee operates. Typically, the actual funding is on a demand from the holder of the purchase escrow funds when the purchase of the replacement property is ready to close.
Preparing the Instruction to Trustee to Fund Acquisition
The following instructions are for the preparation and use of first tuesday Form 173-3, the Instruction to Trustee to Fund Acquisition. Form 173-3 is designed solely for the investor or businessman (seller) to prepare the necessary instructions and deliver them to the trustee prior to escrow’s call for funds, a prerequisite to the trustee’s disbursement of the funds held in trust. A full copy of the form is available here so you can follow along with the instructions.
The instructions correspond to the provision in the form bearing the same number.
Trustee identification: Enter the name of the trustee who holds the sales proceeds, which were disbursed to the trustee under supplemental escrow closing instructions entered into by the seller and buyer, under the Declaration of Trust the seller’s buyer entered into with the trustee.
Identification of the trust: Enter the name of the trust as it appears in the Declaration of Trust appointing the trustee who holds the proceeds of the seller’s sale.
|1.||Instructions to the trustee: Enter the description of the real estate the seller is going to acquire as his replacement property for the property.|
|2.||Demand to be funded: Enter the dollar amount of cash funds the seller is required to deposit into his purchase escrow account for the purchase of replacement property. Enter the name of the escrow holder for the purchase of the replacement property, the escrow number for this purchase and the address of the escrow holder.|
Seller’s signature: Enter the date the seller signs. Obtain the seller’s signature. Hand the trustee the signed instructions.