Understanding Deed-To-Trust™

Detailed Information For HELP Program Sellers and Professional Advisors

General Overview:

The Deed-To-Trust™ program functions as a wholly legitimate and practical means for transferring the Rights and Benefits of Fee-Simple Real Estate Ownership, and is based upon the centuries old Land Trust, which came to be known in the US in the late 1800’s as the Chicago Title Illinois Land Trust. The underlying documentation and execution of the Deed-To-Trust™ Program is accepted in all 50 States in the U.S.

For a complete history and use of Land Trust visit this page.

In Deed-To-Trust™, the property’s owner-of-record (as the trust’s Grantor) appoints a second party (HousingSC) as a co-beneficiary, to be referred to as the transaction’s Investor-Intermediary Co-Beneficiary. This party agrees to accept all responsibilities for the property’s payment, taxes, insurance, etc., then appoints a third party as the trust’s Resident Beneficiary, who, in exchange for all rights, privileges and benefit of homeownership, agrees to live in, and assume all responsibilities of the trust property: being thereupon granted a percentage of the trust’s beneficiary interest (i.e., from ten to ninety-percent), which percentage becomes that party’s stipulated share of net profits to be earned upon the trust’s termination and disposition of the property (i.e. following sale or re-finance).

Compatibility With Federal Regulations and Admonitions:

Deed-To-Trust™ is far safer, offers more protections, and is wholly compatible with all existing regulations that could otherwise negatively affect, or be regarded as being opposed to, “seller financing” because the deed to the property does not transfer from the current owner to another (purchasing) party, but rather to a fully valid living trust under the management of an independent, professional 3rd party non-profit trustee.

When the deed is held in trust, all Fee Simple Bundle of Rights and benefits of ownership of real property remain the same, or are superior to, a standard deed transfer. (See list of Rights below).

Since the deed is granted to a trust in which the grantor (current owner / seller) remains a beneficiary, and is NOT transferred to another (purchasing) party, Deed-To-Trust™ does not constitute a violation of any lender’s due-on-sale admonitions (See FDIRA 12USC1701j-3); Nor is there a compromise of Dodd-Frank Wall Street Reform and Consumer Protection Legislation.

Furthermore, since Deed-To-Trust™ does not involve the formal sale, purchase or mortgage financing of real estate, an option to buy real estate or any extension of credit, there is no involvement with any section within the Federal Truth-in-Lending Act (TILA); the Homeowners Equity Protection Act (HOEPA); the Real Estate Settlement Procedures Act (RESPA); or the Fair Credit Reporting Act (FCRA).

Understanding The Terminology and Participants:


The current owner of record (seller) who “Grants” legal (but not equitable) title (the deed) to the trust. 

Non-Resident Primary Beneficiary

The current owner of record (seller) becomes known as the “Non-Resident Beneficiary” because they will no longer reside in the property.

Trustee Nominee

The title-holding entity, ie a professional 3rd party, non-profit charitable 501(c)(2a) corporation, acting solely for the benefit of its members. (The “members” are the beneficiaries of the trust(s) held by the trustee).

Investor-Intermediary Co-Beneficiary

A party (Nascent Equity, LLC) acquiring interest in the trust for investment purposes. (Also known as the “Secondary, Non-Resident Beneficiary”).

Resident Co-Beneficiary

A party appointed by the trust’s beneficiaries who will live in the property under a triple-net occupancy (lease) and be responsible for ALL payments, expenses, upkeep and repairs.

How Vesting The Deed With a Non-Profit Trustee Protects The Grantor (Seller):


Real Property placed into a Title-Holding (Land) trust is converted to "Personal Property."


Personal Property held in a Title-Holding (Land) trust is immune from lawsuits, judgement and liens.


ALL Beneficiaries (including the current owner of record) share Power of Direction.


Seller can relocate quickly without first having to pay off the underlying mortgage.


Eliminates the requirement for an acquiring party to secure new mortgage financing and any other bank-imposed credit requirements or restrictions.


Seller is protected from potential title fraud since the deed does not transfer to another buyer until all underlying debt is retired.


Shields real estate ownership from public view.


Only the deed to the 3rd-party nominee (the Trustee) is recorded in the public record.


Only the unrecorded, privately held trust document contains the identities of the trust’s beneficiaries.


The trust document, along with the identities of the parties, remain unavailable to any inquiring party, absent a full court order and official deposition.

Home Ownership Benefits That Accrue to The Resident Beneficiary

Full Use Occupancy of The Property.

Quiet Enjoyment.

Income Tax Deductibility (Mortgage Interest and Property Tax).

Equity Build-Up from mortgage principal reduction.

The right to let or sublet (i.e. lease or sublease) or to vacate the property at the trust’s termination (or sooner if all parties are in agreement).

Why Deed-To-Trust™ Effectively Nullifies Lender and Government Regulations Involving Seller-Financed Real Estate

While virtually 100% of all “RIGHTS AND BENEFITS” of real estate ownership are being conveyed from an owner of record to another party, the granting of the deed to the trust does not constitute any of the following:

A sale of the real estate.

A purchase of the real estate.

Creation of a mortgage or extension of credit.

An option to buy at a reduced or adjusted price.

An Executory Contract.

A contingency sale of the real estate.

A disguised security agreement, or equitable mortgage.

A partnership, corporation or business trust.

How It All Comes Together

Deed-To-Trust™ Process From Start to Finish

Establishing The Trust: What Happens at Inception



The Grantor (owner) grants the deed to a fully licensed and bonded third-party professional non-profit corporate trustee and initially becomes the sole director of the trust with full power of direction over the actions of the trustee, as well as who shall have responsibility for the property’s management maintenance and ultimate disposition.



The Grantor then directs the Trustee to execute an Assignment of Beneficial Interest to the Investor-Co-Beneficiary in the trust, along with mutual power of direction with the Grantor.



The Investor-Beneficiary then directs the Trustee to execute an Assignment of Beneficial Interest to a 3rd party to become known as the Resident Co-Beneficiary because they will ‘reside’ in the property.

What Happens at Termination


No less than six-months prior to the trust’s scheduled termination date, the Resident Beneficiary is given the first right to purchase the trust property at its then Fair Market Value, minus any moneys owed to that party by the Trust at the time of purchase.


The Investor Beneficiary has the second right to purchase the property under the same parameters as the first.


The third right to purchase goes to the First Beneficiary who needs but take the property back and place it on the market for sale, or deal with it in any other manner they might choose.

What Happens If The Property Is Purchased By a Trust Beneficiary or
Sold On The Open Market?


Any and all remaining encumbrances on the property are retired (paid-off) on behalf of the Grantor (seller/owner of record).


All costs of re-marketing and sale (or other disposition) are paid (e.g., escrow, title, commissions, etc.)


Each beneficiary is reimbursed any non-recurring expenditures they paid at the trust’s inception.


All net proceeds from the sale are paid to each beneficiary in proportion to their percentage of beneficiary interest in the trust.

For Further Help, Contact Your Representative or Click The Button Below to Contact Us