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Old 05-28-2008, 11:24 PM
mgc mgc is offline
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Join Date: May 2008
Posts: 1

buying a house in a Trust


What is the name of your state? CA

I recently made an offer on a house that was under a trust. The trust was under seller's mom's name who died a couple of months ago. The seller accepted the offer and the contract was signed by both parties. As per the contract we are supposed to close escrow in 30 days which will be Jun 12th. Now the seller's attorney tells her that she cannot sell the house until the title is transferred to her. And to transfer the title they need to go to court and the earliest court date they can get is August 22nd. This is inconvenient for me in several ways.
1. The loan rate lock cannot be extended without a penalty
2. Registration for public school for my son is delayed
3. I already started design plans for additions to the house by an architect.

What are my options now? I really do like the property and can wait and work around the other problems but i still have 2 problems - financial and the fear that what if things don't work out in the end because of some problem in the court.

Thanks
MC
  #2  
Old 05-29-2008, 08:59 AM
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Join Date: Feb 2007
Posts: 8,231
You might negotiate or sue for damages, but it's still possible that the whole deal will blow up. If they legally can't close before they do this transfer, there's not much that can be done. However, I find the whole concept bizarre. Is the daughter not the trustee. If not what in the trust document prohibits her from selling from the trust to you. If she is not the trustee, who is and why was she selling property she neither owned or could act upon?

If you want to close this before the date they say, you will almost certainly have to have your own lawyer look into what they are saying.

As for residency issues for your kid, see if they will rent you the house until they can sell it.
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