Case Study: Mediation Settled With Help From Title Holding Trust

The Title Holding Trust or Land Trust is written and designed for the purchase, holding, management and ultimate disposition of real property and/or personal property.  The most common use and benefit of the Title Holding Trust is for confidentiality and privacy of ownership, but there are many other uses and benefits as well. 

Case Study: Title Holding Trust To The Rescue

Title Holding Trusts are extremely effective tools in dispute resolutions.  This case study involves just such a case. 

Here are the facts:

• Two parties were involved in bitter litigation.
• Party A amended their complaint to include all of Party B's businesses, all of Party B's real properties, and all of Party B's relatives and the relative's businesses. 
• Party A then proceeded to file liens on all of Party B's real properties, including those owned by Party B's relatives.
• One of Party B's commercial properties fell into technical default, but the lender was not willing to work with Party B to resolve the issue.
• A new lender was identified, but the new lender required that the lien filed by Party A be removed or subordinated before they would refinance the commercial property.
• Party A refused to remove or subordinate the lien. 
• Party A and Party B went to mediation to resolve the issue.
• The Parties resolved the issue with the help of a Title Holding Trust.

Settlement and Resolution

The subject property would be placed into a Title Holding Trust.  Party A and Party B would be named as joint beneficiaries with equal power of direction or authority over the Trustee.  Written authorization and direction for the Trustee to act would be required from both parties.  Exeter Fiduciary Services, LLC would serve as Trustee.  Party A agreed to release the lien under these circumstances since both parties were protected by the Title Holding Trust, and the new lender was willing to proceed with the commercial refinancing.