Understanding Trusts

If the property you are selling is held in a trust, the sale process has specific requirements. Here's what you need to know as a seller.

Selling Property Held in a Trust

The trustees act on behalf of the trust. All trustees who must sign (per the trust deed) must agree to the sale. Banks and conveyancers will require a trustee resolution authorising the sale of the property. The transfer attorney will need the trust deed, letters of authority (if applicable), and proof that the signatories are authorised trustees.

Bond Cancellation (If the Trust Has a Bond)

If the trust has a bond over the property, the bond must be cancelled before or simultaneously with transfer. The cancellation attorney (appointed by the bank) will cancel the bond. The seller (trust) typically pays the cancellation costs. Ensure the trust has funds set aside for this, or that the sale price covers the outstanding bond and costs.