+ Reply to Thread
Results 1 to 2 of 2
  1. #1
    unclebuck1 is offline Junior Member
    Join Date
    Nov 2005
    Location
    Jackson County, OR
    Posts
    8

    TRUST AGREEMENT "FLIM-FLAM"

    What is the name of your state?I’m in the state of Oregon-----

    I am the trustor.-----A trust agreement exists on a parcel of land and the agreement states that it is the desire of trustee and trustor that title shall be in the name of the trustee, for the benefit of the trustee and the trustor. The trust agreement states “trustee and trustor shall share equally in any benefit” (the use of the land, or the sale of resources, or the proceeds of any sale of the land). It also states that the trustee can sell to a third party without the consent of the trustor and in such a case if the trustor does not wish to accept any proceeds of a sale, the trust agreement follows the land.

    About six years ago trustee sells to a third party (subject to the terms of the trust agreement). The new trustee in succession holds title to the land and the trustor’s interest remains intact.

    About eighteen months ago the new trustee in succession sells to someone else and the purchaser receives a warranty deed from a very well known title company in this state. It was issued “free and clear of any liens and encumbrances” (without any reference to the trust agreement). The new purchaser knew full well in advance about the trust agreement (I brought it to his attention and he read it, also it’s been in the public record for 45 years).

    The day I found out about the warranty deed I called trustee (no answer, left message on his answering machine to contact me). To date I have not heard from him.

    The same day we went to the title company to find out what happened, how did the new purchaser get a warranty deed free and clear of all liens and encumbrances (no reference was given to the trust agreement in the new warranty deed)? They said, the seller gave them written instructions to turn over all the proceeds to him and he would settle with the trustor. I said, that’s the title company’s job, to do a title search and satisfy all parties of interest before any proceeds are dispersed and a warranty deed is issued. They said, their legal department said it was OK because we do it all the time.

    Well, to shorten this up some, we did not want any of the proceeds, we wanted the trust agreement to follow the land. My side brought suit against the new purchaser. It has been adjudicated, my side won! The new purchaser is the new trustee in succession, the trust agreement follows the land and trustor’s interest remains intact.

    Now here’s my question…… I believe the fiduciary duties of all three were woefully remiss. I believe there was collusion, bordering on civil if not criminal. Do I have a cause for action against the title company and/or the previous trustee?

    It’s cost us a ton to maintain our rights to the land. I want to nail somebody’s hide to the barn door. What I think we need is a “gunfighter attorney” to take on the title company if possible. Where is Paladin when you need him?
  2. #2
    HomeGuru is offline Senior Member
    Join Date
    May 2000
    Location
    Catatonic State
    Posts
    81,916
    Quote Originally Posted by unclebuck1
    What is the name of your state?I’m in the state of Oregon-----

    I am the trustor.-----A trust agreement exists on a parcel of land and the agreement states that it is the desire of trustee and trustor that title shall be in the name of the trustee, for the benefit of the trustee and the trustor. The trust agreement states “trustee and trustor shall share equally in any benefit” (the use of the land, or the sale of resources, or the proceeds of any sale of the land). It also states that the trustee can sell to a third party without the consent of the trustor and in such a case if the trustor does not wish to accept any proceeds of a sale, the trust agreement follows the land.

    About six years ago trustee sells to a third party (subject to the terms of the trust agreement). The new trustee in succession holds title to the land and the trustor’s interest remains intact.

    About eighteen months ago the new trustee in succession sells to someone else and the purchaser receives a warranty deed from a very well known title company in this state. It was issued “free and clear of any liens and encumbrances” (without any reference to the trust agreement). The new purchaser knew full well in advance about the trust agreement (I brought it to his attention and he read it, also it’s been in the public record for 45 years).

    The day I found out about the warranty deed I called trustee (no answer, left message on his answering machine to contact me). To date I have not heard from him.

    The same day we went to the title company to find out what happened, how did the new purchaser get a warranty deed free and clear of all liens and encumbrances (no reference was given to the trust agreement in the new warranty deed)? They said, the seller gave them written instructions to turn over all the proceeds to him and he would settle with the trustor. I said, that’s the title company’s job, to do a title search and satisfy all parties of interest before any proceeds are dispersed and a warranty deed is issued. They said, their legal department said it was OK because we do it all the time.

    Well, to shorten this up some, we did not want any of the proceeds, we wanted the trust agreement to follow the land. My side brought suit against the new purchaser. It has been adjudicated, my side won! The new purchaser is the new trustee in succession, the trust agreement follows the land and trustor’s interest remains intact.

    Now here’s my question…… I believe the fiduciary duties of all three were woefully remiss. I believe there was collusion, bordering on civil if not criminal. Do I have a cause for action against the title company and/or the previous trustee?

    It’s cost us a ton to maintain our rights to the land. I want to nail somebody’s hide to the barn door. What I think we need is a “gunfighter attorney” to take on the title company if possible. Where is Paladin when you need him?

    **A: I agree, you need that type of an attorney.

Similar Threads

  1. Custody agreement appealed in IL which agreement is in "play"?
    By JH37 in forum Child Custody & Visitation
    Replies: 30
    Last Post: 07-11-2011, 10:50 PM
  2. first offence DUI in PA...paging "paguy88" and "FlyingRon" and "kate33"
    By redredcavalier9 in forum Drunk Driving / DUI / DWI
    Replies: 10
    Last Post: 05-19-2008, 03:58 PM
  3. "Payable on Death" Trust (Totten Trust)
    By skyblue48 in forum Business Contracts and Franchises
    Replies: 2
    Last Post: 07-22-2006, 08:12 PM
  4. Florida "Notice of Trust" needed for irrevocable trust?
    By Sbernold in forum Wills, Trusts and Estate Planning
    Replies: 0
    Last Post: 08-11-2005, 06:12 PM
  5. Flim Flam?
    By pete11_2000 in forum Consumer Contracts, Guarantees and Warranties
    Replies: 3
    Last Post: 04-22-2005, 03:35 PM

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  

© 1995-2012 Advice Company, All Rights Reserved

FreeAdvice® has been providing millions of consumers with outstanding advice, free, since 1995. While not a substitute for personal advice from a licensed professional, it is available AS IS, subject to our Disclaimer and Terms & Conditions Of Use.