Many distressed property transactions today require multiple persons to make a deal work, particularly when outside funding is needed to rehab a property or the property is being purchased from a bank as a REO.
If only one of the parties holds title to the property, then the others can feel insecure about the risks of unauthorized title transfers, misapplication of funds on sale, and the personal impact of involuntary liens such as mechanic’s liens or a citation for violation of a building code.
These issues can be resolved by holding title in a trust with THSC as the independent title holding trustee for the benefit of its members involved in the transaction. By each of the participants in the transaction becoming a member of THSC, they can be involved in the formation of a trust to hold the property during the course of the transaction.
With THSC holding title to the property investors can secure deals that would have escaped them before.