Confidential Purchases of Real Estate – Boulder Real Estate Agent
The information presented here is for general educational purposes only and does not constitute legal advice. For specific information about your particular circumstances it is always best to consult with an attorney knowledgeable in this area of the law.
For the most part, a person’s assets are not part of the public record. Not so when it comes to real estate transactions. The details of every real estate transaction must be communicated to the assessor for the county in which the real estate is located and, at the very least, the deed must be recorded with the clerk and recorder. Every document that is recorded is public information, including the names of the grantors (sellers) and grantees (buyers). If you are concerned about the prospect of your home addresses being linked to your name and made easily searchable there are options available to keep your personal information largely out of public view.
For many celebrities it is vital to have privacy in the initial stages of the home-buying process. While viewing properties, maintaining privacy may mean seeing properties after dark, asking the home sellers to turn off cameras that may otherwise capture your image, and leaving your name off of any showing information provided to the sellers.
Once you have found a home that’s right for you, a confidentiality clause to keep your information and dealings with the sellers private may need to be included in the real estate contract or presented to the sellers as a stand-alone document.
For most confidential buyers the most important privacy issue, by far, is the public record following closing. Without a trust or business entity, such as a limited liability company, to hold title to the property, the owner’s name will be available to anyone with an internet connection and a little bit of knowhow.
Trusts are one of the most widely used tools for maintaining privacy following closing. Trusts are often named after the settlor of the trust (e.g., the Jane Doe Trust, dated 01/01/2018). For obvious reasons, owning property in the name of a trust that’s named after you would usually not be the best option for privacy purposes. Nonetheless, naming a trust after something other than yourself can lead to its own complexities—the pros and cons of the way your trust is named should be discussed with the attorney who helps you draft your trust.
LLCs can be named almost anything, so long as that name is not already used by an entity registered with the state. A registered agent, other than yourself, who is based in Colorado is essential for maintaining privacy. If your home will be owned by two or more non-married people it is usually best to have an operating agreement in place that spells out the rights and obligations of the parties. There can be issues related to ownership of real estate by LLCs and the so-called “due on sale” clauses of mortgages and deeds of trust. As with trusts, using an LLC to own real estate requires the assistance of an attorney with knowledge of this area of the law.
Keeping a real estate purchase confidential can be vitally important for celebrities, the very wealthy, police, prosecutors and judges. It’s important to have the assistance of a confidentiality-minded Boulder real estate broker who understands how to work with attorneys and manage the different components of the transaction to keep your information as private as possible.
If you are looking for a Boulder real estate agent with a results oriented approach tailored to your specific needs, contact Royal Arch Real Estate. We are knowledgeable and experienced brokers who always have your best interests at the forefront of our minds, whether you are buying or selling a home, vacant land or a new construction.