How Do You Sell Your Home If It’s in a Trust?
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Placing Property into a Trust
Often, people place their personal residence or other types of real estate into a revocable living trust or, in some cases, an irrevocable trust. A common question that arises is: how do you sell a piece of property that’s held in a trust? Let’s break it down.
How to Sell Property Held in a Trust
The process is actually quite simple. Selling a property from a trust works much like selling it when it’s held in your individual name. Normally, when you own the property outright, you sign the deed as the individual owner, transferring the property to the buyer. The same concept applies with a trust, except instead of signing as an individual, you sign as the trustee of the trust.
Who Signs the Documents?
If you are the trustee, you have the authority to sell the property. Sometimes there is only one trustee, but in other cases, there may be co-trustees, meaning multiple people need to sign. For example, if your name is Joe Smith and you’re the trustee of the Joe Smith Revocable Living Trust, you would sign as “Joe Smith, Trustee of the Joe Smith Revocable Living Trust.” If both Joe and Jane Smith are co-trustees, they would both sign as co-trustees of the Smith Family Revocable Living Trust.
What If There’s a Mortgage?
One important consideration is whether there is a mortgage on the property. If so, you’ll want to notify the lender about the upcoming sale. Lenders often want to be informed of any conveyance or transfer due to a sale. They may ask to see the deed or even review the trust document, although this isn’t always required.
Lender Requirements May Vary
Some lenders have specific policies or procedures in place, while others are more flexible and simply acknowledge the transfer without needing further documentation. Either way, be sure to sign all documents as trustee and coordinate with the lender to make sure you’re complying with any requirements they may have.
Conclusion
Selling a property held in a trust is generally straightforward. The key points are signing as the trustee and notifying any lender involved. With those bases covered, the process is almost identical to selling a property held in your own name.
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