I have a closing tomorrow... well, I have four closings, but this one in particular has been interesting. The seller is a "Living Trust" with a trustee signing the documents. No problem, right? Well... only one of the parties is still living. What happens to a Living Trust if not everyone is living anymore?
The Trust states what happens to everything and how things should be handled. The trust, because it encompasses more than just real estate, is very long and private. The title company was demanding the entire trust to clear title.
Behind the scenes, the trust was selling the primary residence at the same time, both in Texas, but 3 hours away from each other so completely different markets. Title company A accepted a notarized affidavit stating what the trust says so the entire private Trust didn't have to be handed over, in addition to the pages referenced in the affidavit. Title company B would not accept such a notarized affidavit. They really really had to have the entire trust. Why? Round and round for about three weeks.
Did I mention that Title company B is the "parent" company of Title company A? If it's good enough for the child, why isn't it good enough for the parent, who uses the same Underwriters??
My seller, after several conversations with her attorney, reluctantly turned in the entire Trust just to get this closed tomorrow, but there has to be a better way to allow people to retain their privacy in situations like this. If you're looking to sell properties from a Trust, a Divorce, a Probated Will, or anything that isn't "normal", be prepared to put it all out there to clear the title.
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Copyright© 2011 By Donna Harris, All Rights Reserved. You may re-blog with links back to this post.
* You Might Have to Jump Through Hoops to Close the Deal * was first published on donnahomesblog.com.