LAND TRUST ADDENDUM- Land Trust

Land trust addendum – what is it

When there is a land trust agreement which has been drawn up there are various land trust addendum which are added to it. These additions are added for certain reasons or to clarify certain points which were not mentioned in the original document.

For example, a land trust addendum which is added to the sale deed could state that the settlement will be done and the title will be transferred and the property will be taken in a trust by the purchaser. The land trust addendum can add that the seller is aware that the amount of the loan will not be paid fully and that both the seller and the purchaser are aware of the mortgages.

These land trust addendums are written so that all kinds of easements are strengthened and the enforcement of these easements can be improvement further. This helps in enforcing as well as in protecting of these easements for long term and against all sorts of unforeseen circumstances when they crop up as these provide guiding principles.

These land trust addendums inform of what are the amendments and what should be the laws which are applicable as well as the requirements which should be applied as well. These land trust addendums are consistent with the main body of the documents and they do not jeopardize the main document, it’s purpose, aim or in any way contradicts it. It is meant for conservation as well as consistency of easement and so that it lends clarity to all parties concerned.

(No Ratings Yet)

Sample Template Preview

ADDENDUM TO CONTRACT REGARDING LAND TRUST

This is an Addendum to the Contract of Sale Dated _______________________________ by and Between _________________________________________ as Seller(s) and ________________________________________________________
________________________________________________ as Purchaser(s) for the sale of property located at _______________________________________________________.
Notwithstanding anything to the contrary in the main part of the above mentioned Contract, the parties agree as follows:

Settlement shall be completed by Seller(s) transferring title by Warranty Deed into a land trust, naming __________________________ as trustee. All documents necessary for establishing the trust shall be prepared by _________________________________, who will be representing the interests of the Buyer.  Closing services will be performed by _______________________________.

The Purchaser(s) will be taking the property in trust subject to mortgage(s)/deed(s) of trust/Security Deeds existing on the property and the underlying existing loans and assumes no personal liability for said loans. Effective ________________, 20____, the Purchaser(s) shall begin paying all monthly obligations on the underlying loans and for property taxes, assessments, homeowner’s association dues (if applicable) and any other expenses related to the property.

The Seller(s) is aware that this loan will not be paid in full at closing and may continue to appear on Seller(s) credit file. Seller(s) will provide Purchaser(s) will loan payment statements and  written permission to contact the holders of any debt securing a deed of trust on the property.  Seller(s) agree to waive any remaining balance of taxes, Mortgage Insurance and insurance escrows, if any, held by the lender(s).

Both Seller(s) and Purchaser(s) are fully aware that the mortgage(s)/deed(s) of trust securing the property stated above contain provisions prohibiting the transfer of any interest in the property without satisfying the principal balance remaining on the underlying loans and/or obtaining the lender’s prior written consent (i.e., a “due-on-sale” clause), and that this transaction may violate said mortgage(s)/deed(s) of trust.   Both Seller(s) and Purchaser(s) are aware that in the event said lender(s) discover this transfer, the underlying loans may be called due and payable in full, and if not satisfied, said lender may at it’s discretion begin legal proceedings to recover title and ownership the property.

_____________________________        ________________________
Seller                            Date

_____________________________        ________________________
Seller                            Date

_____________________________        ________________________
Purchaser                        Date