Posted on: 08th Aug, 2009 09:50 am
1. When a real estate contract which is set up in a Deed of Trust is satisfied in full as to the purchase price what happens to the "Trust"?
2. I am aware that the "Deed of Trust" instrument passes from the Trustee to the beneficiary (purchaser) which entitles purchaser to the full monetary value of the property.
3. I have heard that the "Trust" continues thus the property is still in trust and that the original trustee merely passes the trust to the purchaser thus making the purchaser the new trustee for the benefit of his/her heirs. (Is this correct so far?)
4. If all the above is true, then if for some reason a need arose that either the said "new trustee" or the beneficiaries wanted to revoke said trust would they have the option to do so?
I hope I have given you enough info to make my inquiry
answerable, but if more is needed email me and I will try to clarify. I am not very learned in real estate matters. Sorry:) Thanks for your answer and time in advance.
2. I am aware that the "Deed of Trust" instrument passes from the Trustee to the beneficiary (purchaser) which entitles purchaser to the full monetary value of the property.
3. I have heard that the "Trust" continues thus the property is still in trust and that the original trustee merely passes the trust to the purchaser thus making the purchaser the new trustee for the benefit of his/her heirs. (Is this correct so far?)
4. If all the above is true, then if for some reason a need arose that either the said "new trustee" or the beneficiaries wanted to revoke said trust would they have the option to do so?
I hope I have given you enough info to make my inquiry
answerable, but if more is needed email me and I will try to clarify. I am not very learned in real estate matters. Sorry:) Thanks for your answer and time in advance.
hey dixie,
a deed of trust contains 3 parties - the trustor or the borrower, the trustee or the person who holds the legal title and the beneficiary or the lender. this is a document which records your original loan amount, description of the property, the parties, the origination and maturity date of the loan, late fees etc. when the loan is fully paid, the claim on the title is transferred to the borrower by a re-conveyance. in case, the borrower defaults on the loan, the trustee can foreclose on the property and transfer title to the lender or sell the property to pay the lender from the proceeds.
a trustee is a third party neither related to the lender nor the borrower. so i don't think you will have to change the trustee. as far as the beneficiary is concerned, he is the lender. if you refinance the loan with another lender, you need to change the deed of trust.
a deed of trust contains 3 parties - the trustor or the borrower, the trustee or the person who holds the legal title and the beneficiary or the lender. this is a document which records your original loan amount, description of the property, the parties, the origination and maturity date of the loan, late fees etc. when the loan is fully paid, the claim on the title is transferred to the borrower by a re-conveyance. in case, the borrower defaults on the loan, the trustee can foreclose on the property and transfer title to the lender or sell the property to pay the lender from the proceeds.
a trustee is a third party neither related to the lender nor the borrower. so i don't think you will have to change the trustee. as far as the beneficiary is concerned, he is the lender. if you refinance the loan with another lender, you need to change the deed of trust.