Agreement for Deed Questions.

1) Do I need to necessarily have my trustee change the Land Trust to their names as the beneficiary? A.- NO!! The trust will not change at all. The potential buyers will only get ownership of the property if they complete what they agree to in the AFD. The ownership will not change.

2) I assume that the tax process stays unchanged...but, I am a little confused on how to handle the insurance. I bought the home about 2 months ago and paid a full year of Fire Insurance at closing. How do we deal with this? Who is the payee on their new policy? A. They can deduct the interest on their taxes and you should not deduct. Only one deduction allowed per property.

As far as insurance goes, you will have a landlord policy for the amount of your interest in the property AND the potential buyer will get a homeowners policy naming you OR your company OR the trust as the mortgage/lien holder.