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Updated about 1 year ago on . Most recent reply

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Ashwin M.
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Rental investment in NC - can deed be assigned to existing trust during purchase

Ashwin M.
Posted

Hello all, I am close to getting into contract on a rental investment property in Raleigh suburbs (Johnson county, NC). I am from CA and have had a family trust for a couple of years. My CA real estate attorney had advised back then that even any out-of-state property I purchase should be moved into the trust. My query was, as I review the contract documents I see the deed assignment is to my name. Seller (new home builder) mentioned they can assign it to trust if I provide all the trust documents to provide it is an active entity that I can sign for.  My only doubt was the mortgage would be in my individual name so does that preclude having the property deed in trust name (is that considered a mismatch?). Sorry if this is a basic query but I have differing views since one contact mentioned it is better to assign deed to my individual name (to match loan) and then move it to trust AFTER closing....however, I am not sure about the complications there since my CA attorney told me that process will need confirmation that title insurance will still honor claims for property transferred into the trust.  Hearing that, I feel that if it is cleaner to just have the deed assigned to the trust from the get go (as long as mortgage/lender process has no issues), I would prefer that. I am trying to find a NC attorney to get the local views on this but since I need to sign the contract soon, I wanted to reach out here as well.

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