Handling Simple or Complex Transactions
THSC can act as title holding trustee for situations as simple as a traditional land trust; but traditional land trusts are not well-suited to active property transactions. They were designed simply to hold title to property across generations, for which the unlimited life of a corporation like THSC is well-suited.
But where THSC really excels is in active, creative or complex real estate transactions in which a title holding trustee must be sure that it is executing the correct documents at the correct time and handling them in the proper manner. This requires the kind of in-house expertise provided by real estate strategies attorney Ronald M. Ballard acting as Secretary and General Counsel to THSC to provide for legal review of THSC actions before any deed, voluntary lien or other transactional document is executed by THSC.
Sample Complex Transaction
With the ongoing crisis in most real estate markets, creating value continues to be more difficult than ever before.
Simply rehabbing a house might involve one person buying the property, another handling the rehab, another funding most of the rehab, and, eventually an end-buyer taking over the property for occupancy or leasing out.
Each of these persons has a different financial interest:
The buyer wants purchase and personal capital protected from new liens and ease of taking possession if the rehab goes sour.
- The rehabber wants to be sure to receive the proper share of profit on resale and to have the ability to attract construction funding.
- The funder wants to be sure that loan proceeds are properly applied, sales proceeds first payoff the loan, and that there are no unauthorized liens or transfers until the final sale.
- If the end buyer is a landlord who leases out the property, it may be interested in privacy and a degree of asset protection.
- If the end buyer is an owner occupant, it may be interested in proper title for estate planning and probate avoidance purposes.
All of these differing financial interests can be resolved using a properly structured trust with an independent title holding trustee. THSC is likely the only, specially structured nonprofit mutual benefit corporation with the legal sophistication to hold title and safely protect multiple financial interests in creative transactions such as these.