Archive for the ‘Trust’ Category

Land and anything that is permanently attached to the land such as any other structures are referred to as real estate. Buying and selling of real estate could be for both, living or for investing purposes. Mortgage loans play a very important part when you have to buy real estate and do not have the adequate funds to do so. When we speak of real estate law, both federal and state laws come into play. Real estate law is a body of regulations that includes matters related to commercial and residential property transactions.

Federal laws governing real estate

One of the most important acts in relation to real estate is the Fair Housing Act.

This act is responsible for protecting you against discrimination based on race, color, sex, religion or national origin, when you are involved in a real estate transaction.  This law is applicable in all states however; all states may have their own unique state laws that are applicable only to that particular state.

The Contract law is another important law that governs the sale of real estate. A principal in the contract law, that is called the Statue of Frauds, states that all real estate transactions should be in writing.

Real property law also influences the real estate laws. This is because real estate transactions involve the buying and selling of land. As per this, the seller must make sure that he or she has the title to the property that he or she is selling. It should also be declared that no third party has any interest in that property. There is one basic difference between real estate and real property. Real estate also includes structures on the land whereas real property deals only with the land.

Laws for real estate transactions

You may employ a broker so that you can get some help on your real estate transaction. You are to then enter into a contract or a listing agreement with your seller. As per the guidelines of the particular state you are located in, your broker must be a licensed broker. As a buyer you are to find out if the seller title is marketable. To inquire into the marketability of the property you may either take the help of an attorney or an insurance company. In case you find that the title is marketable then, as per law you and the seller must sign a deed that contains a description of the real estate. As per the laws of the state, you are then needed to record the transfer of the title.

A family trust company or a partnership can prove to be one of the most important asset protection tools prevalent in the market. If it is drafted well and adequately funded, it can act as a barrier to the creditor for taking up your property.

As the name suggests, a family trust company refers to an establishment whose ownership stakes are largely held by the members of a family. A trust is formed when an individual holds a share in a property for the benefit of another individual, also referred to as a beneficiary. A family trust is formed to benefit the members of a family.

The aim of a family trust company is that the personal assets are transferred to the trust. This implies that the individual has no assets against his or her name. It is only through the trust that the individual has some sort of control over the assets and therefore is benefited by the same.

A family trust must possess the following factors:

• The Trustees: The trustees are responsible for the administration of the trust.

• The Settler: The settler is the one who is responsible for the setting up of the trust and is also the one who initially holds the assets and transfers them later on.

• The Trust Deed: This is the official document that documents the wishes of the settler and initiates the trust.

• The Beneficiaries: The beneficiaries are the ones who benefit from the trust. The beneficiaries include family members.

A family trust passes on the legal control of the assets owned by one individual to another. This limits the imposition of future inheritance taxes on the property. The beneficiaries of the trust are not supposed to pay any income tax on the amount earned through the trust.