We often deal with transactions involving trusts and we want to address the necessary documentation that’s required when a trust is involved in a commercial title insurance transaction.
What is a Trust?
A trust is a legal entity that holds property for the benefit of others. The trust document (typically a trust agreement) appoints a person or corporation (a Trustee) to manage the trust according to its terms.
Trusts are created to set up some guidelines for the handling of property. It doesn’t necessarily have to be real estate – it can be other types of property as well – such as money or stocks.
For our purposes in the title industry, we’re concerned with trusts involving real property. Trusts are usually set up to determine what happens with a particular piece of property. The key document in a trust is the trust agreement itself. Often this document is drafted by an attorney. We always advise clients to have trust documents drafted by an attorney. We’ve seen significant problems with do-it-yourself online trusts that need to be fixed in court at a later date and at sometimes considerable expense.
Commercial Partners Title
If you have more questions about trusts and title insurance, reach out to Commercial Partners Title today! Our experts have decades of experience facilitating commercial transactions across the United States. We have the knowledge and expertise to help you through your next commercial real estate transaction.