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Land Trust in Ohio


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#1 Guest_Godaddyo_*

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Posted 06 May 2004 - 02:40 PM

hey guys,

I'm new here so if this question has been asked before, please forgive me. I believe that some of you probably use land trusts when you do a lease option. I met someone south of me once who told me you couldnt do a land trust in Ohio, or more specifically, you couldnt put a land trust on the deed as "owner". I have been told that Land Trusts are legal in all 50 states, but I am trying to get down to the bottom of this. I have never seen a deed made out to a trust of any kind in my state in my 2 years of researching public records. I am open to the possibillity that I have missed them, but I would like to know where I can find information. I have the link to the Ohio Revised Code, but that doesnt seem to help at all.

thanks,

G

#2 MichaelC

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Posted 07 May 2004 - 05:01 AM

Our Legal Eagle is California based so I don't know that he can quote Ohio law regarding land trusts. There are a few OH based members on the board here, so maybe one of them can shed some light for you.
You also may want to consider contacting a local real estate attorney for a definitive word on the subject. That would seem to be the best way to have your questions answered accurately.

#3 vmoney

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Posted 08 June 2004 - 02:13 PM

Not sure if this is completely true, but I'm in MI and a reputable real estate attorney/investor I met told me land trusts in all states, with the exception of Illinois are fiction. He said they are not enforceable outside of IL, although some judges will honor them and other may not. Not sure really why this is and I'm hoping to get a better explanation. Any comments are welcome.

#4 MichaelC

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Posted 09 June 2004 - 07:48 AM

Not sure if this is completely true, but I'm in MI and a reputable real estate attorney/investor I met told me land trusts in all states, with the exception of Illinois are fiction.  He said they are not enforceable outside of IL, although some judges will honor them and other may not.  Not sure really why this is and I'm hoping to get a better explanation.  Any comments are welcome.

I must say that I find that attorney's statement to be highly questionable. If it is true, then there are many, many investors and homeowners engaging in illegal activities.

#5 vmoney

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Posted 09 June 2004 - 08:08 AM

I must say that I find that attorney's statement to be highly questionable. If it is true, then there are many, many investors and homeowners engaging in illegal activities.



Michael, I agree it was shocking to hear for me also. The thing is he said it was not illegal just not enforcable, therefore not the protection you are thinking you have in a deal with the seller, because there is no provision for "land" trusts in any state's laws other than IL. I know it's confusing and I'm not sure I completely understand this, but he has 20 years experience in real estate, so I did not want to dismiss it out of hand. He is a very respected "creative" investor in our area and even teaches a class.

#6 MichaelC

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Posted 09 June 2004 - 09:16 AM

First, thanks for that clarification of illegal versus enforceable. It may make a bit of difference, but I'm still not sure I buy it. Nor do I think we should dismiss this attorney's opinion out of hand, either. Quite a hot button topic, though, because there are other attorneys who specialize in just this sort of asset protection and they hold an opposite viewpoint. Heck, there are even a few who sell courses on it, and provide seminars on this very subject.

#7 vmoney

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Posted 09 June 2004 - 09:47 AM

Is this something that Mike Pinkerton can address for us some time. I would at least like to get his insight on the topic.

Thanks!!!

#8 mpine

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Posted 09 June 2004 - 10:00 AM

Trusts are for privacy, not protection... It is just one more tool to keep the uninterested or less interested parties from suing you.

The theory is they will search for your name, and no properties will show up since they are listed as trusts. Anyone motivated enough to perform there due diligence can get you pretty much no matter what.

Best wishes,

Mike
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#9 Lydia

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Posted 09 June 2004 - 12:11 PM

Bill Bronchick made a statement that land trusts don't work in Louisiana or TN. I checked into that locally, and was told (I'm in TN) that land trusts are not illegal, they are just not as useful as they may be in other states. I have heard that TN charges transfer tax when you record a deed to trustee. Deeds are recorded in the name of a trust here, because I have seen some.

I think the Illinois statement made isn't correct. I think the best thing to do is talk to a local lawyer.

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#10 Dave T

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Posted 17 August 2004 - 09:06 PM

I met someone south of me once who told me you couldnt do a land trust in Ohio, or more specifically, you couldnt put a land trust on the deed as "owner".

I believe this statement is technically correct. When an asset is placed into a trust, title is held by the trustee on behalf of the trust. One state where I have property, I would see the ownership listed in the public records as "John Doe, Trustee". The deed might read something like "John Doe, Trustee, 123 Main Street Trust".

In my humble opinion, a Land Trust is no different from a revocable living trust with only one asset -- real property. Revocable living trusts, as estate planning tools, are even exempt by federal law from enforcement of the DOS clause in the homeowner's mortgage when the homeowner remains the beneficiary of the trust.




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