From the beginning we’ve encouraged questions and comments about the web site and the subject of Virginia Land Trusts.
I’m sharing this email from a Texas investor, (with permission) with you’ll because it gives insight into the fear and misinformation that’s out there about the Land Trust.
From a web site visitor …
A couple of Board Certified Real Estate lawyers (Texas) tell me that Texas Law does not recognize the validity of Land Trusts.
Can you shed light on this?
My comments….
Thanks for your question.
First, I’m not an attorney.
My understanding is that Texas does no have a Land Trust law. That is not the same as not recognizing the validity of a Virginia Land Trust.
The constitution, the high law of the United States, has embodied in it the recognition of the sanctity of contracts and the admonition that all states would recognize the rulings in other states.
The authority that we draw from is found in of the United States Constitution:
Article 1, Section 10 “No State shall:…. Pass any Bill of Attainder, ex post facto Law, or Law impairing the obligation of Contracts’. ( the Virginia Land Trust is a contract)
Article 4 Section 1…. Full Faith and Credit shall be given in each State to the public Acts, Records and Judicial Proceedings of every other state.”
If Texas refuses to honor those sections perhaps Article 4, Section 2 would get your attorney friends attention, which states in part that… The Citizens of each State shall be entitled to all Privileges and Immunities of Citizens in the several states…. And according to the rules of the common law.
All this is not to say that the legal authority in Texas or any other state, would act constitutionally. If you are in an area that could present difficulties and if you anticipate an appearance in a court that makes their own laws, land Trust may not be the best approach for you.
Courts that ignore the law (and there are many) challenge “you” you to appeal. Even if you are “right”, most of us cannot afford to fight the good battle. That is the result that the rogue judges bets on.
We do have Virginia Land Trust in Texas. However, we have not had any legal tests there.
Yours is a common question. Perhaps this has focused a little light on the subject. But I know it’s not an answer. Sorry, best I can do.
Thanks again for your question and interest in our service.
Earl
Earl: yes, you certainly did provide clarification and I very much appreciate your response and insightful comments.
I am going to continue to make inquiries – I do know that Trusts can, indeed, own Texas real estate as I (as a real estate broker) have
several clients’ Trusts that do. These are not “land trusts” – simply Trusts that were formed for common reasons: taxation, efficient transfer ownership, etc.
Again, thanks for your reply.
These kind comments from a Texas Web Site Visitor
To all you that’s about to get around to it…..Lets us know when you are ready, getting started is the hard part…
We do all the Trust paperwork and make it easy for you.
Earl
Citi Trustee Services LLC