Hi everyone,

Looking for more info on land trust. What are they, how do they work? Positives and negatives of land trusts, the works. Thanks

I'll quote PacificForest a land trust is "A non-profit, non-governmental charitable organization that helps interested landowners and communities find ways to protect their land from over-development so it can continue to provide open space, habitat, clean water, scenic beauty and other values of public benefit."

There are also community land trusts that provide low and middle income families access to affordable housing.

Trusts allow the administration of land for a specific use.

hope that helps

Thanks for the interpretation bigp.

Are there any good books available on land trusts out there?

What is a land trust?
A land trust is a simple, inexpensive method for handling the ownership of real estate. It is an arrangement by which the recorded title to the real estate is held by a trustee, but all the rights and conveniences of ownership are exercised by the beneficiary whose interest is not disclosed. This method of owning real estate can eliminate many of the difficulties that otherwise may be encountered in acquiring, owning, selling or transferring real estate. The beneficiary of a land trust changes his or her interest in the property from real estate (title to property) to personal property (ownership of the beneficial interest). Even though the beneficiary retains complete management and control over the property itself, he or she is not burdened with many of the legal characteristics of real estate when dealing with the property. Since the beneficial interest is considered to be personal property, it is treated in much the same manner as a car, bank account, or other tangible property. Consequently, the beneficial interest can be sold, pledged or assigned in a simpler fashion than a conveyance of realty.

Land Trust Key Facts
· Anyone that is capable of entering a contract may establish a land trust– an individual, a group of individuals such as a partnership, corporation, or limited liability company; or two or more private individuals who desire to purchase and own the real estate as a joint venture.
· Under a land trust agreement, the beneficiary retains complete control of the real estate in the same manner as if the recorded title were in his or her name. The beneficiary may terminate the trust whenever desired and may add additional property to the trust at any time.
· The trustee executes deeds and mortgages and deals with the property only when directed in writing by the beneficiary.
· When title to real estate is held in a land trust, the interest of the beneficiary, under the terms of the trust agreement, is personal property. Since the beneficiary’s interest is personal property, he or she may transfer it by assigning that interest without the formality of executing and acknowledging a deed.
How do I establish a land trust?
A land trust is established through a two-step process. First, the beneficiary or beneficiaries must complete and sign the land trust agreement. Under the agreement, the owner – or beneficiary – names Chicago Title Land Trust Company as the organization that will serve as trustee. Second, a deed in trust, transferring the property from the current owner to the trust, must be completed and recorded with the appropriate County Recorder of Deeds Office.
Why Select Chicago Title Land Trust Company?
Our dedicated trust professionals are committed to developing long-standing relationships with our financial customers to ensure sound financial planning. We want to help you protect your property and its future distribution to your heirs in a responsible, organized and
uncomplicated manner.
The Benefits of Land Trusts
· Succession and Probate Avoidance – Under a land trust agreement, the party creating the trust can retain sole control over the property during his or her lifetime, with the provided for succession in ownership becoming effective upon death without the expense of going through probate proceedings. This can be especially helpful to those who live out of state but own real estate in this state. They will not have to institute separate probate court proceedings but can have the land trust property administered in their home state.
· Owner protection – If the property in trust is owned by more than one individual, the title to the property may become faulty and unmerchantable because of death, legal disability, divorce, judgments and many other types of litigation affecting one of the co-owners. When the property is held in a land trust, a judgment against one of the beneficiaries does not automatically constitute a lien upon the real estate held in trust. Thus, a beneficiary is provided with an extra measure of protection against lawsuits.
· Ease of conveyance – A land trust provides a convenient means of mortgaging and selling a trust property without having to obtain deeds from all of the beneficiaries and their spouses. This is especially helpful in situations where numerous parties have an ownership interest or the involved parties are living in different states.
· Privacy of ownership – Under a land trust, unless required by law, the identity of the real owner is not disclosed to the public, keeping parties involved confidential. Our beneficiaries are always notified regarding inquiries about their property.
· Disposing of part interest – The disposition of a partial interest in property may be advantageous for estate planning purposes. A land trust simplifies the common problem of disposing of a partial interest in a property since the beneficial interest under a land trust can be transferred by assignment. The assignment of the beneficial interest eliminates the necessity of a deed.
CHICAGO TITLE LAND TRUST COMPANY
171 N. Clark St, ML04LT
Chicago, IL 60601-3295

drobin....
you will need to check on your states laws regarding Land Trust. While you can use Land Trust in most states, only about a third of states have effective laws on Land Trust.

bigp's definition is excessively narrow in scope and does not cover 99% of existing Land Trust and probably not yours.

Land Trust are very useful to investors and just every day people.

One of the best sources for information is a guy named Duda. He has several books out on Land Trust for each state that has effective Land Trust Laws. Most are based on Illinois Land Trust. Do an on-line search for "Land Trust Duda" and you will find him and others... most selling very expensive and not as useful coursed and information. Several very good software packages are also available to allow you to make use of Land Trust in your investment dealings when buying Sub 2.

First determine if you have effective laws in your state, Illinois, Florida and Colorado do... I really don't recall which others do.

good luck.

Realty Check & Pikes Peak thank you both so much for input and wisdom. The info and clarity you've provided on land trusts is greatly appreciated. :-)

Thanks again.