Title Holding Services is organized as a California nonprofit mutual benefit corporation. It is not a stock corporation organized for the profit of its shareholders. As a matter of fact, it doesn’t have shareholders; it only has members.
Ordinarily in California a corporation can act as trustee of a trust if it is a licensed trust company or a public charity acting pursuant to its charitable purpose. There is a limited exception for a mutual benefit corporation to hold title to property in the role of trustee solely for its members. Before a mutual benefit corporation can hold title on behalf of a person or entity, the person or entity must become a member of the corporation.
THSC provides for a class of Beneficial Members. These are non-voting members for whom THSC can hold title on their behalf. A person or legal entity must apply for and be approved for membership. THSC requires an application to receive base information similar to a title company Statement of Information to properly identify potential members.
An individual, legally married couple, legally registered domestic partners, members of a civil union, and any form of legal entity in good standing is eligible to apply as a member. There is a $15 non-refundable application fee for one individual and $25 for entities and two-person memberships for processing the application so THSC can follow up on confirming the information. Additional information may be required if THSC cannot readily verify the information provided. Submission of an application is no guarantee of approval.
Membership is required to be a grantor (the person(s) forming a trust), a present beneficiary (the person(s) receiving rent or other benefit of the property in a trust), or a secured party (such as a bridge funder for a 6 month rehab loan secured by a beneficial interest in the trust).
Once a member is approved, there is a $100/year membership fee which helps to cover THSC basic operating overhead on a predictable basis and to communicate with members about relevant legal and similar information. Membership is for a 365 day year after approval and payment. Membership fees are nonrefundable and will be renewed automatically with no less than seven days advance email notice to cancel membership before renewal.
If you would like to become a member, please authorize your $25 nonrefundable application fee below and we will email the application form within 24 hours of receipt (usually a couple hours during business hours). We are working on automating this process for your future convenience. (For your safety the application fee is deposited in the Ballard Law, A Professional Corporation, attorney-client trust account and not released to THSC until the application process is completed. If all information submitted to THSC cannot be verified, membership will be denied.)
Once you have received email, postal, or telephone notice of approval for membership, you can pay your first year’s membership fee below. Your membership will be effective on the date payment is charged and will be valid for 365 days. The primary benefit of membership is that a member can apply for THSC to act as trustee of a title holding trust in which the member is a grantor, beneficiary or lender secured by a beneficial interest in the trust. Annual membership fees are nonrefundable.