Who has authority to sell trust land?
Land in a trust is sold by the trustee, the person or institution named to manage the trust’s property. The authority to sell comes from the trust document, which commonly gives the trustee the power to sell real property. If there is more than one trustee, the document says whether they must act together. If the person who created the trust has died, the successor trustee named in the document steps in. You generally do not need to take the land out of the trust to sell it; the trust can sell directly.
What will the title company want to see?
Because the trust is the owner of record, the title company confirms the trustee’s authority before closing. That usually means some combination of:
- The trust document, or a shorter certification of trust naming the current trustee and confirming the power to sell.
- Proof of who the acting trustee is, including a death certificate if a successor trustee has taken over.
- The trustee signing the deed in that capacity, as trustee of the trust, rather than as an individual.
This is standard work for a title or escrow company. It adds a document or two; it is not a different kind of transaction.
What is a certification of trust?
Many states let a trustee provide a short certification of trust instead of the full trust instrument. In Texas, Property Code §114.086 lets a trustee give a certification to a person other than a beneficiary. It can state that the trust exists and when the instrument was signed, identify the settlor and acting trustee, state the trustee’s powers, say whether the trust is revocable, and describe whether co-trustees must act together. The certification must also state that the trust has not been revoked, modified or amended in a way that would make it incorrect. See the text of §114.086. Your attorney or the title company will tell you whether it is enough for your sale.
How do trusts relate to probate?
One reason people put land in a trust is to avoid probate, the court process that otherwise clears title after a death. If the parcel was properly held in the trust, you often skip that step, which can make a trust sale faster than a sale through an estate. If the land never made it into the trust before the owner died, it may still need probate; see selling inherited land. The title company flags which applies early, so it does not surprise you at closing.
Can a trustee who lives out of state sell?
Yes. Trustees are frequently out of state, especially when they are adult children handling a parent’s property. A trust land sale can be signed and closed remotely through a title company the same way as any other land sale. See selling land from out of state.
What if there is more than one trustee or beneficiary?
Check the trust document for whether all co-trustees must sign. Beneficiaries are not usually signers, but disagreements among them can slow things down or lead to disputes, so the trustee should be comfortable that the sale is consistent with the trust’s terms. An attorney licensed in the property’s state can advise on duties and risks. We are not a law firm and cannot.
Outside Texas, verify rather than transplant the rule
Trust law, certification-of-trust statutes and title practices differ by state. Ask the title company in the property’s state what it accepts, and consider an attorney licensed there. Do not assume a Texas form will satisfy another state’s title company.
Before you contact a buyer, gather these
Trust sales go smoothly when the trustee has documents ready. Collect:
- The full trust document, including any amendments, or the certification of trust if one exists.
- The deed that shows the trust as owner, or the trustee’s name as shown on the record.
- Identification for each acting trustee.
- If a successor trustee is acting, the documents showing the earlier trustee has died, resigned or been replaced.
- Recent property tax statements.
- Any prior title policy, survey or loan paperwork you can locate.
You do not need all of these to begin a conversation, but having them close shortens the back and forth later.
Revocable and irrevocable trusts
Trusts differ, and the type can change who signs and what the title company asks for.
- Revocable trust. Often created by an owner during life and managed by that owner. After death, it typically becomes irrevocable and a successor trustee takes over.
- Irrevocable trust. Generally cannot be changed easily. The trustee’s powers are defined by the document, and the trust may have rules on when land can be sold.
- Trusts with restrictions. Some documents require consent from a co-trustee, a trust protector or a beneficiary before real estate is sold.
Read the sale powers and any limits before signing anything. If the language is unclear, ask a trust and estate attorney licensed in the property’s state to explain it.
Questions trustees often ask
Do you have to show the whole trust to a buyer? Often not. A certification can serve that purpose, though the title company decides what it needs.
Can you sell below what a beneficiary expects? A trustee has duties to beneficiaries. Document how you reached your decision, such as comparing written terms. See how to compare cash land buyers and what is my land worth.
Who receives the proceeds? Proceeds generally go to the trust, not to you personally. Ask the title company about how it will disburse funds, and ask a CPA how the sale is reported.
What if the deed names you personally, not the trust? The land may not have been transferred into the trust. Raise this early so the title company can tell you what it needs.
What a buyer (including StraightAcre) will want to see
The parcel ID, the name of the trust as shown on the deed, the name and contact details of the acting trustee, and a copy of the certification of trust when you have one. StraightAcre reviews parcels held in a trust in its active markets and closes through a licensed title or escrow company that confirms trustee authority.
Sources and further reading
Related guides
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