Trust can be a reliable way to manage your assets and real estate. But you may be thinking about how possible it is to sell a house owned by a trust. Most people think this process is challenging but by following the right procedures and guidelines, it can be done. Selling a house owned by a trust extends beyond getting a buyer and handing over the deed to the property; it requires that you follow certain steps. But what are the exact steps? Continue reading to learn more!
Understanding the Basics of a Trust
A trust is a legal entity entrusted with the responsibility of holding assets and properties for someone. A trust can hold anything including vehicles, valuables, and real estate. The trustee goes ahead to manage the assets based on the terms established by the settlor or grantor.
Types of Trusts
There are four main types of trusts:
Revocable trusts: A revocable trust can be changed or dissolved by the grantor at any time.
Irrevocable trusts. An irrevocable trust cannot be changed or dissolved by the grantor.
Living trusts: A living trust is created during the settlor’s lifetime.
Testamentary trusts. A testamentary trust goes into effect after the death of the settlor.
This type of trust will determine how assets are managed and distributed. Knowing the type of trust you have helps you know the best procedures to follow to sell your house.
Steps to Selling a House in a Trust
To sell a home owned by a trust, the first step is to contact the trustee. The trustee is in charge of the trust and may even be the one to approve the sale.
- Get an Appraisal
After you’ve been given the go-ahead, you’re required to get a professional appraisal of the property. An appraisal is important because potential buyers want to be sure that they’ll be getting fair market value for the property. Also, getting an appraisal facilitates the process of obtaining financing and is also essential for tax purposes.
- Notify All Beneficiaries
All beneficiaries of the trust must be notified of your intention to sell the house. Since they all have a vested interest in the property, any action on the property could affect their interest.
- Get the Necessary Documents
Before you can sell a house owned by a trust, you’ll need to gather important documents such as the trust agreement, the deed to the property, etc. Your lawyer will review all documents to ensure that all the trust’s conditions are met.
- Hire a Real Estate Agent
You need to hire a real estate agent that has experience in selling houses owned by trusts. They will help market the property. A real estate agent knows the best way to list your house on the market, take professional photographs for publicity and promote the house on social media.
- Accept an Offer and Close
Before accepting any offer for the house, review the offer with your real estate agent and ensure you’re settling for the best price. Once you’ve reviewed the offers, you can go ahead and accept them and close the sale. After closing the sale, the trustee will hand over the deed to the buyer and must let the beneficiaries know how the transaction process went.
Sell Your House in a Trust to a Cash House Buyer
You can sell your house in trust to a cash house buyer. This seems like a better option because the trustee would be able to negotiate and close the sale of the house on behalf of the beneficiaries. Selling to a cash house buyer is also a way for the trust’s beneficiaries to benefit from the sale.
If you’re looking for the best cash house buyer to sell your house owned by a trust, we at Austin All Cash are your best option. We’re Austin House Buyers and we’re sure to give you the best price for your house. We’ll also close the sale of your house as fast as possible. With us, you don’t have to worry about listing your house to get it sold. We’re cash house buyers, not traditional realtors.
Contact us today to learn more about our services!