Property Ownership

In Idaho, what is a 'deed in trust' or 'land trust' and how is it used?

AA deed automatically created when a deed of trust is recorded

BAn arrangement where a trustee holds title to property on behalf of beneficiaries, often used for privacy or estate planning — less common in Idaho than in some other states✓ Correct

CA required deed form for all Idaho commercial transactions

DA deed used only in Idaho foreclosure proceedings

Explanation

A land trust places title in the name of a trustee while the beneficial interest (all rights of ownership) is held by beneficiaries. Land trusts are used for privacy (public records show only the trustee's name), estate planning, and co-ownership of investment properties.

People Also Study

Key Terms to Know

Deed of Trust

A security instrument used in many states instead of a mortgage, involving three parties: borrower (trustor), lender (beneficiary), and a neutral trustee.

Deed

A written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).

Net Operating Income (NOI)

The annual income generated by an income-producing property after subtracting operating expenses, but before debt service.

Abstract of Title

A condensed history of a property's title, summarizing all recorded documents and encumbrances affecting it from the earliest record to the present.