Title in Trusts:
For a variety of reasons (mainly estate planning), homeowners often transfer the title of their property from themselves as individuals to a trust. Most people don’t realize that this can create a little extra legwork when they go to actually sell their property. When a title company pulls a title report, they find that title is not vested in John & Jane Doe’s name, but rather in the Doe Family Trust.
Escrow is required to ask the owners for a copy of the trust agreement. The trust agreement is rarely recorded, so it needs to be provided by the owner to determine who has the signing authority for the trust. This is necessary before escrow can prepare documents for a sale or a refinance.
• A trustee may assign a successor trustee (another person to perform their duties) but they cannot give a Power of Attorney to anyone.
• This is different from holding title as an individual. If title is held in this manner the client may appoint an attorney in fact to sign on their behalf.
If you are planning on selling your home and have a trust, you can be proactive by preparing copies for your real estate professional, lender, and escrow.