Once on title, land trust doesn't really shield ownership

Q. I own a piece of vacant land that I would like not to be disclosed to the public. Would a land trust be a way I could accomplish this?

A. It could have been a way to shield the public from your ownership if, when you purchased the property, you had taken ownership directly from the seller into the land trust. However, it sounds like you are personally in title now. That cannot be erased. Although you can convey the property into a land trust, the public records will disclose you previously owned the property. The subsequent conveyance into the land trust would indicate to anyone familiar with real estate that you continue to own the property.

Q. There is a home in my neighborhood that I believe has been foreclosed. A "for sale" sign went up recently, and I called the real estate company to tell them I was interested. The listing agent came to my home with a contract that I have not yet signed.

There are terms in the contract that I cannot agree with. It says I am buying the house "as is," that the seller makes no representations about the property and that the seller will not make any repairs, although I can do an inspection on the property. It says the seller will not provide a survey, which my mortgage company tells me I am going to need, so I guess I get stuck with that bill. It states they will only prorate real estate taxes based upon the last known bill. And if I do not close by a certain date, they will penalize me $75 per day until the day I close.

I spoke to the Realtor about these terms, and she told me that the bank will not negotiate the terms of the contract. In other words, take it or leave it. Do you find this common with bank-owned real estate? I can't believe they sell any houses under these terms.

A. The terms you describe are all common provisions contained in riders to contracts when a bank or mortgage company is the seller. And although I agree that banks are generally unenthusiastic about negotiating the terms of their contracts, one can usually obtain some concessions.

The bottom line is banks/mortgage companies want a fast, clean deal, meaning they don't want to grant four mortgage extensions waiting for the purchaser to qualify for a loan and they don't want the purchaser coming back to them after the sale complaining about the leaky roof or poor drainage in the kitchen sink. Accordingly, they write contracts putting the onus on the purchaser to conduct a thorough inspection of the property and to make sure he or she has financing in place.

In regard to the seemingly unfair provisions concerning tax prorations and the survey, these are simply money issues. Calculate your cost regarding these items and build that into your offer.

Oftentimes and especially in this current market, bank-owned property can be purchased for significantly less than market value. However, it is important that you fully understand the property you are purchasing, which means conducting a very thorough inspection of the property during the inspection period. Once the deal is closed, if problems arise, you will generally not have the same remedies against the seller as you may have had in a conventional transaction.