How To Profit In Land Contracts - Part 5 LAND TRUST AGREEMENT
THIS TRUST AGREEMENT, dated the ________day of ____________, 2_____ and known as Trust Number __________, to certify that ___________________________
___________________________________________________________________ is
about to take title to real estate, under the provisions of Section 33.438, Arizona Statutes, in ____________________________County, Arizona, as described in Schedule A attached hereto, and that when he has taken title there to, or to any other property conveyed to him as Trustee hereunder, he will hold it and the proceeds, profits and avails thereof, if any, which may come into his possession by direction of the beneficiary or beneficiaries or by specific terms hereof, in Trust, for the ultimate use and benefit of the following named persons according to the respective interests herein set out and assigns:
IT IS UNDERSTOOD AND AGREED by and between the Trustee and any person or persons who have or may become entitled to any interest under this trust, that the interests of any beneficiary hereunder shall consist solely of a power of direction to deal with the title to said property and the right to receive or direct the disposition of the proceeds from the rentals and from the mortgages, sales or other disposition of said premises; such right in the avails of said property shall be deemed to be personal property and may be treated, assigned and transferred as such, that in the case of the death of any beneficiary hereunder during the existence of this trust, his or her right and interest shall, except as herein otherwise specifically provided, pass to his or her personal representative and not to his or her heirs-at-law; and that no beneficiary now has, or shall hereafter at any time have, any right, title or interest in or to any portion of said real estate as such, either legal or equitable, but only an interest in the earnings, avails and proceeds as aforesaid; it being the intention of this instrument to vest the full legal and equitable title to said premises in the Trustee. The death of any beneficiary hereunder shall not terminate the trust or in any manner affect the powers of the Trustee hereunder. No assignment of interest hereunder by a beneficiary shall be binding on the Trustee until the original and duplicate copy of the assignment, in such form as the Trustee may approve, is lodged with it and its acceptance indicated thereon.
1. It shall not be the duty of the purchaser of the trust property or any part thereof to see to the application of the purchase money paid therefore; nor shall anyone who may deal with the Trustee be privileged or required to inquire into the necessity or expediency of or as to the provisions of this instrument.
2. This trust agreement shall not be recorded or filed in the county in which the trust property is situated or elsewhere, except as hereinafter provided, but the recording or filing of the same shall not be considered as notice of the rights of any person derogatory to the title or powers of the Trustee.
3. While the Trustee is the sole owner of the real estate held by it hereunder and so far as the public is concerned and has full power to deal with it, it is understood and agreed by the persons, in interest hereunder, and by any persons who may hereafter become interested, that the Trustee will deal with it only when authorized to do so in writing and that it will (unless otherwise directed by the beneficiaries on the written direction of ____________________________________________________________
or on the written direction of all of the beneficiaries hereunder at the time, make contracts or deeds for the sale of or otherwise deal with the said real estate or any part thereof; provided, however, that the Trustee shall not be required to enter into any personal obligation or liability in dealing with the said trust property or to make itself liable for any damages, costs, expenses, fines or penalties, or to deal with the title so long as any money is due to it hereunder, and to the extent of any moneys due to it hereunder, it shall have a lien on the property or the proceeds thereof. Otherwise, the Trustee shall not be required to inquire into the propriety or purpose of any such direction.
4. The beneficiary or beneficiaries hereunder shall have and retain (except as otherwise expressly provided) the management of said property and control of the renting, handling, encumbering, selling or making any other disposition thereof, and any beneficiary or his agent shall handle the rents thereof, and the proceeds of any encumbrances, sales or other disposition of said property; and the Trustee shall not be called upon to do anything in the management or control of said property or in respect to insurance, litigation or otherwise, except on written direction of the beneficiaries hereunder for the time being, as hereinabove provided, and after the payment to it of all money necessary to carry out said instructions.
5. No beneficiary hereunder shall have any authority to contract for or in the name of the Trustee, or use the name of the Trustee in any advertising or other publicity, or to bind the Trustee personally.
6. If the trust property or any part thereof remains in the trust twenty (20) years from this date, the Trustee shall convey, transfer, set over and deliver the same to the beneficiaries in accordance with their respective interests.
7. The Trustee, at any time, may resign by sending by mail a notice of its intention so to do to each of the then beneficiaries hereunder at his or her address last known to the Trustee. In the event of such resignation, a Successor or Successors may be appointed by the person or persons then entitled to direct the Trustee as to the disposition of the trust property, by an instrument in writing lodged with the resigning Trustee, having endorsed thereon the acceptance of such Successor; and thereupon the resigning Trustee shall convey the trust property to such Successor or Successors in trust.
(a) In the event no Successor Trustee is appointed as herein provided, within thirty (30) days from the date of such resignation, the resigning Trustee may convey the trust property to the beneficiaries in accordance with their respective interests hereunder and thereupon this trust shall terminate. The Trustee notwithstanding such resignation shall continue to have a first lien on the trust property for its costs, expenses, including reasonable attorney's fees and for its reasonable compensation.
(b) Notwithstanding anything herein contained, the Trustee, at any time and without notice of any kind, may resign as to all or part of the trust property if, in the opinion of the Trustee, the Trustee may be subjected to embarrassment, insecurity, liability, hazard or litigation.
(c) Every Successor Trustee or Trustee appointed hereunder shall become fully vested with all the estate, properties, rights, powers, trusts, duties and obligations of its, his or their predecessor.
8. All obligations incurred by the Trustee hereunder shall be the obligations of the trust only and not the individual obligations of the Trustee.
9. At any time and from time to time additional property may be conveyed to the Trustee under this trust, and only when accepted in writing by the Trustee shall such property and the proceeds thereof be held, dealt with and disposed of under the terms of this agreement in the same manner as the property above specifically described.
10. The Trustee shall receive for its services in accepting this trust and title hereunder the sum of $_________ for the first year and the sum of $_________ for each succeeding year as long as any property remains in the trust; also regular schedule fee for making deeds or any other instruments, upon review of trust by Trustee, annual fee may be changed by Trustee; and it shall also receive reasonable compensation for any special services rendered by it hereunder and its attorneys, solicitors or agents, or for taking or holding any other property hereafter deeded to it hereunder, which fees, charges, compensation and the trustee's expenses the beneficiaries hereunder jointly and severally agree to pay.
11. The Trustee and the beneficiaries for the time being shall constitute the sole persons in interest under this agreement. Communications addressed by the Trustee to the beneficiaries at their last address appearing on its records shall be sufficient for all purposes. The Trustee may disclose the name and address of any beneficiary.
12. Notwithstanding anything herein contained to the contrary in the event the Original Trustee shall die or become incapacitated, or be unwilling or unable to act for any reason, the following in order of their listing (able and willing to act) is appointed SUCCESSOR TRUSTEE with the same powers and duties as the Original Trustee;
_________________________________________________________________
13. Recording of this Trust Agreement and Acceptance of Successor Trustee shall vest title in Successor Trustee with the same powers and duties as Original Trustee. Recording shall be made in the County wherein the property held hereunder is located, and all other provisions of this Trust shall remain in full force and effect.
14. Notwithstanding anything herein to the contrary, in the event a Successor Trustee shall die or become incapacitated, or be unwilling or unable to act for any reason, any beneficiary then living or their personal representative if deceased, may appoint a Trustee to carry out all the functions of a Trustee, with the same powers and duties of the original Trustee. Said beneficiary may name himself Successor Trustee. A copy of this Trust Agreement shall be recorded with the County Recorder where any property held under this trust is located, together with a statement of appointment of the new Trustee, signed by the beneficiary, or if deceased, the successors as provided herein, and if there is no named successor, said instrument may be signed by the Personal Representative of the estate of a deceased beneficiary. If a successor beneficiary is named herein, a deceased beneficiary or personal representative shall have no right, title or interest in the trust property or the beneficial interest.
IN TESTIMONY WHEREOF, said Trustee, accepted the duties of Trustee, the day and year first written, and on said day the said beneficiary has signed this Declaration of Trust and Trust Agreement in order to signify his assent to the terms hereof.
WITNESSES: BENEFICIARIES:
___________________________ ______________________________
___________________________ ______________________________
ACCEPTED AS TRUSTEE:
___________________________
(Notary Certification)
ASSIGNMENT
______________, Arizona
Dated________________
FOR VALUE RECEIVED I (We) hereby sell, assign, transfer and set over unto
________________(New Beneficiary)_____________________________________
all my (our) rights, power, privileges and beneficial interest in and to that certain trust
agreement known as Trust No._______dated ________________, including all interest
to the property held subject to said trust agreement.
____________________________ ________________________________
Witness Beneficiary of ____& Undivided Interest
____________________________ ________________________________
Witness Beneficiary of ____% Undivided Interest
(Notary Certification)
All documents in this e-book are examples only and should not be used without the advice of a real estate attorney. This document and accompanying materials are designed to provide authoritative information in regard to the subject matter covered in it. It is for illustration purposes only and presented with the understanding that the author and publisher are not engaged in rendering legal, accounting or other professional opinions. If legal advice or other expert assistance is required, the services of a competent professional should be sought. |
