Wednesday, September 23, 2009

Preparation of Warranty Deed to Trustee for Florida Land Trust

Warranty Deeds to Trustees are used to transfer real estate into Florida Land Trusts and are by far the most important transaction related document used when establishing and funding a Florida Land Trust.

Granting Authority to the Florida Land Trust Trustee
The Warranty Deed to Trustee conveys and details the specific legal authority and powers given to the Trustee of your new Florida Land Trust by the Warranty Deed. The Trustee, who can be an individual or entity, still has all of the powers and authority given to it by the Warranty Deed to Trustee even if you never draft and execute a formal Florida Land Trust Agreement. However, we always recommend using a formal Florida Land Trust Agreement.

Drafting the Warranty Deed to Trustee
Warranty Deeds to Trustees must grant full authority and power to the Florida Land Trust Trustee. The individual who is drafting your Florida Land Trust Agreement must ensure that the requirements listed in Section 689.071 of the Florida Land Trust Statute be included in the Warranty Deed to Trustee language.

Land Trust Trustee Should be a Natural Person or Legal Entity
A Trustee should be a natural person (human being) or a legal entity (such as a corporation or limited liability company). The Florida Land Trust itself does not have legal capacity to execute documents and is not a natural person or legal entity, so the Warranty Deed must convey the real property to the Trustee of the Florida Land Trust, such as Exeter Fiduciary Services, LLC, as Trustee of Florida Land Trust No. 12345.

The Trustee has the legal capacity to act on behalf of the Florida Land Trust, so you should also take great care in the selection of your Trustee. There are many providers that charge nominal fees, but getting in touch with them and actually getting timely service can be a challenge. So, be sure to thoroughly review the options, services, expertise and experience in addition to the fees charged by prospective Florida Land Trust Trustees.

Personal Property Designation
Warranty Deeds should include language stating that the beneficiary's interest in the Florida Land Trust is a personal property interest (in other words not a real property interest). This is an important distinction between the Florida Land Trust and a regular living trust. I don't have enough time to go into greater detail here, but will do so in a future post.

The Warranty Deed to Trustee should also clearly state that the Trustee does not have any person liability, which should take care of any possible exceptions that might be found in the Florida Land Trust law.

Tuesday, September 22, 2009

More Signs that Economy is Rebounding

Continuing Improvement in Current Economic & Market News

Retail sales increased 2.7% (-5.9% yoy) in August. Ex-autos, sales were firmer than expected, rising 1.1% (-7.0% yoy). This reading introduces additional upside risks to Q3 GDP growth.

Gasoline prices pushed the PPI up sharply in August by 1.7% (-4.3% yoy), while Core PPI rose 0.2% (+2.3% yoy). The core index was a bit stickier than we forecasted, with prices of new cars and trucks contributing to the upside surprise.

CPI in August rose 0.45% (-1.5% yoy) while core CPI rose 0.07% (+1.4% yoy). The firmer-than-expected readings resulted from the treatment of the cash for clunkers rebates, which were not considered a discount as we had expected. Inflation pressures of other components remain muted,
consistent with tame and abating inflation.

Industrial production jumped 0.8% in August (-10.7% yoy) after a large upward revision for July. The strong back-to-back increases strengthen the likelihood that the NBER will mark the trough of the recession in June. Capacity utilization increased to 69.6% in August. Although still below post WWII standards, we believe the higher than expected increase speaks to the strength of the unfolding rebound.

Housing starts moved up 1.5% in August (-29.6% yoy), as a 25% gain in multifamily starts overwhelmed a 3% drop in single family starts. The setback in single family starts follows five
months of gains of nearly 40%.

Sunday, September 20, 2009

California's Largest Rental Housing Expo on 09/30/2009

The largest rental housing education and networking event is just around the corner. September 30, 2009 is the date for California's largest rental housing expo to be held at the Long Beach Convention Center from 9:00 AM to 5:00 PM in Exhibit Hall B.

The Apartment Association, California Southern Cities
The event is designed and managed by The Apartment Association, California Southern Cities, and looks to be another great day with loads of free information on owning, managing and dealing with apartment housing.

You can discover and learn about all sorts of topics by browsing trade show booths, attending educational programs that will cover topics such as:
  • Secrets to Creating Wealth
  • Credit Checking in Today's Market
  • Covering Your Legal Bases
  • Profitable Employment Practices
  • Social Networking 101
  • How to Rent to Today's Tenants (Panel)
  • Taking Advantage of a Depressed Real Estate Market
  • How to Cut Costs and Put More $$$ in Your Pocket
  • Solutions to the Water Problem for Owners (Panel)
  • Fair Housing Conversation
  • Resident Retention Techniques
  • and much, much more...
Free Admission With Tickets
Call for your FREE admission tickets. We only have 100 tickets to give away. Simply call (866) 393-8370 or email and ask for your free admission tickets to The Apartment Association.

Tuesday, September 15, 2009

More Good Economic & Market News

The Federal Reserve Beige Book showed continued stabilization in economic activity with most Federal Reserve district banks reporting that business contacts “remained cautiously positive”.

Notable points included:

1) Tepid consumer activity aside from vehicle sales increases related to the cash-for-clunkers program; and
2) slight improvement in residential real estate but soft commercial real estate demand; and
3) improvement in manufacturing activity, and 4) labor market weakness. Commentary on inflation suggested downside risks remain in the near-term.

The US trade balance widened substantially to negative $32.0bn in July 2009 from negative $27.3bn in June 2009 on a surge in import growth, offsetting what had been emerging upside risks in our Q3 GDP growth forecast. A wider deficit in vehicles accounted for $1bn of the overall move. Import growth was broad-based with capital goods, consumer goods, and industrial supplies rising.

Initial jobless claims fell to 550k, down from 576k the prior week. Continuing claims fell more sharply to 6.088 million, although this may be due to expiring benefits.

Reuters/University of Michigan's consumer sentiment index rose 4.5 points to 70.2 with gains split evenly between expectations and the assessment of current conditions. The report signals some recovery in consumer expectations, which have been under pressure due to job losses.