Trust Acquisition Agreement™ (TAA™)

Overview

The Trust Acquisition Agreement™ (TAA™) serves as a preliminary proposal to be presented to the Relinquishing Party (typically the property owner or Settlor) before issuing a formal Trust Transfer Agreements through the Equity Holding Transfer™ (EHTransfer™). This document outlines the structure, goals, and protections of the EHTrust™ without relying on title transfer, new financing, or conventional mortgage arrangements.

This proposal introduces the concept of temporary shared ownership benefits under a title-holding trust and explains how the acquiring party may assume economic and use rights of real estate without triggering unauthorized transfer concerns or violating lending regulations.

Key Structure

• Title is deeded to a bonded, third-party Trustee.
• The Relinquishing Party becomes the Settlor and initial Beneficiary.
• An Investor Beneficiary is assigned interest, often with the intent to occupy the property through a separate lease agreement.
• All parties’ rights and obligations are governed by the Trust Agreement and Beneficiary Agreement, not by lease or sale contract.
• Any occupancy rights are granted only by a separate lease agreement under direction of the trust.

Summary of Use

The EHTrust Transfer™ enables a prospective buyer to:

• Receive 100% of the fee-simple benefits of ownership (use, enjoyment, tax deductions, etc.)
• Avoid taking title until financing is ready
• Build a Contingency Fund during the term
• Exit the transaction cleanly if financing fails
• Legally avoid due-on-sale implications (12 U.S.C. §1701j-3)

Sample Proposal Communication Language

“I propose to acquire beneficial interest in your property at the Mutually Accepted Value (MAV) of $__________. You would allow the property to be vested in an asset-protected trust with a third-party Trustee for a set period. During this time, I or an approved occupant will cover all mortgage payments, taxes, insurance, and maintenance costs. Upon termination, I will either refinance or sell, and you will receive any agreed-upon proceeds, minus any trust-documented offsets.”

This language emphasizes mutual protection and contractual certainty—without immediate title transfer, down payment, or exposure to foreclosure.

Legal Positioning

• Ownership benefits are conveyed via trust interest—not deed or loan.
• IRS treatment under Rev. Rul. 92-105 and IRC §163(h)(4)(D) allows income tax deductions for the paying Beneficiary.
• Due-on-sale safe harbor applies where the Settlor retains interest and control under Garn-St. Germain.
• Dodd-Frank exclusions apply when no credit is extended to a consumer.
• Asset protection is enhanced by third-party title vesting and personal property characterization of the beneficial interest.

Clarity in Language

To preserve the non-mortgage and non-sale character of the transaction:

Advertising should not use phrases like “No Money Down”—but may state “No Down Payment,” subject to setup costs.

Conclusion

The TAA™ offers a legally sound, flexible pathway to acquire ownership benefits prior to financing or title transfer. This approach protects all parties, avoids foreclosure risk, and provides income tax advantages to the acquiring party. It is particularly suited to scenarios requiring bridge time for credit repair, down payment savings, or seasoning of income.

This document is not legal advice. Parties should consult qualified counsel before entering any trust-based transaction.

For more information, contact your trust administrator or legal advisor.