Is a real estate contract binding if the property is in the name ofa trust but only the trustee’s name is listed as the seller?
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Is a real estate contract binding if the property is in the name ofa trust but only the trustee’s name is listed as the seller?
The property is listed in my father’s name as, “The [Name Redacted] Living Trust, [Name Redacted] Trustee”. He signed a real estate contract to sell a piece of property but the seller’s name listed is just his, and does not make reference to the Trust. No deposit was given by the buyer, and he would like to cancel the contract. Is the contract legally binding?
Asked on March 8, 2012 under Real Estate Law, Florida
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
If your father is the trustee of the trust, the contract signed by him for the sale of a trust asset as written is valid and binding. The reason is that a person has to act on behalf of the trust that is selling the property because the trust is not a living person. It is an entity.
I suggest that when your father signs future paperwork he sign as "trustee" for the specific trust, that is the seller of the property.
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