Dallas-Fort Worth Real Estate Investor Club

I am nearly ready to restructure my long term holdings. Part of that restructuring involves deeding some properties out of my name and into the names of trusts. 

So, on it's face this seams like a very simple process.

1. Fill out a general warranty deed similar to the one currently on file, naming the trust as the new owner. 

2. Have the deed notarized. 

3. Take the deed to the recording office, pay $10 and have it recorded. 

So, why wouldn't I want to do this myself instead of hiring a Title Company and their attorney to do so on my behalf?

I read on  Bigger Pockets or somewhere that deeding to a Trust or single owner LLC more often than not voids the title policy. So, I called the title co. and spoke with their attorney and of course they confirmed that it would in fact void my policies and I would either have to buy a new policies or pay for special endorsements to the policies. Of course they have to check with the underwriters first though to see how much money they feel like they should extort.

What a freaking racket insurance is.

North American Title is who I am dealing with. Anyway, I finally got a definitive answer today. I guess the first attorney I spoke with on the phone was an intern or legal assistant. I guess, when I didn't go away, they decided to kick it upstairs where someone knowledgeable was finally forced to do their job and answer the question.  

ANSWER:

The transfer to the owner’s trust that you set up will not terminate coverage under the Conditions, No.2 Continuation of Coverage, Item c.  Your policy states:

  We insure your transferee or assignee only as follows:

c. the trustee or successor of a trust established by the original named insured to whom the original named insured

transfers title after the date of policy;