Legal Question in Real Estate Law in Texas

illinois land trust

I'm selling a home and have an offer from an investor to buy at market price, place land in Illinois land trust, put a renter in the property, and transfer deed to investor after several years. Since the property is in Texas, is this legal? Should I be wary of this type of investor, or is this a legal, legitimate type of real estate investing on their part? I realize they get the benefit of any appreciation, but will it be ''safe'' for me in the interim?


Asked on 4/30/07, 8:55 am

1 Answer from Attorneys
Joseph A. McDermott, III Attorney at Law

Re: illinois land trust

You don't mention whether the "investor" is PAYING you for the home. This is critical. If you're getting your money, you don't care what he does. If you're financing the purchase, how much is he paying down? What security are you retaining for the amount financed? Under no circumstances shold you finance part of the price without getting a first lien deed of trust on the property, a mortgagee's title policy, etc.

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Answered on 4/30/07, 2:51 pm


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