Is A Business Trust A Legal Entity Capable Of Holding Title To Real Estate?
There is a difference of opinion on whether a Business or Massachusetts Trust is a distinct legal entity capable of holding title to real property in the name of the trust and state law must be consulted. A deed to a Business Trust in its own name (as distinguished from a deed to the trustees of the trust) should not be insured unless there is a statute permitting an unincorporated association to take title in its own name. If the deed is out of the trust and there is no state statute permitting an unincorporated association to take title in its own name require: • Properly authorized trustees to convey; and, • Ratification of current conveyance by original grantors who conveyed to the trust. If state law authorizes the business trust to take title in its own name, this may be done unless specifically prohibited by the trust agreement.
