Trust Advisory (Form TA)

🔹 GENERAL PURPOSE & UNDERSTANDING

  1. What is the Trust Advisory (Form TA) used for?

Explanation:
The C.A.R. Trust Advisory (TA) is a disclosure and advisory form used when the seller or buyer is a trust. It informs all parties about:

  • The legal obligations of trustees
  • The non-liability of real estate agents for legal/tax matters
  • The importance of confirming trust authority and documentation
  1. Is the Trust Advisory required by law?

Explanation:
No, but it is strongly recommended and often required by brokerages when a trust is involved in a transaction. It helps limit agent liability and clarifies the unique nature of trust-held properties.

  1. Who signs the Trust Advisory form?

Explanation:

  • If the seller is a trust: The trustee(s) sign.
  • If the buyer is a trust: The buyer’s trustee(s) sign.
  • The real estate agent/broker also signs to confirm the delivery of the advisory.
  1. When should the Trust Advisory be signed?

Explanation:
As early as possible—at listing (for sellers) or offer submission (for buyers)—to ensure that all trust-related responsibilities and disclosures are clear.

🔹 ZIPFORMS-SPECIFIC QUESTIONS

  1. Where do I find the Trust Advisory in ZipForms?

Explanation:
In ZipForms:

  • Click “Add Forms”
  • Search “Trust Advisory” or “TA”
  • Select C.A.R. Form TA
  1. Can I add the Trust Advisory to my transaction templates?

Explanation:
Yes. You should add it to your listing and buyer templates, especially if you work in areas with many trust-owned properties (e.g., probate, estate, or investment sales).

  1. Can I send the TA for e-signature through DigiSign/DocuSign?

Explanation:
Yes. Once added to the transaction, you can route it for electronic signature just like any other form in ZipForms.

  1. Do I need a new Trust Advisory form for each transaction, or can I reuse one?

Explanation:
You must use a new, transaction-specific Trust Advisory. Each transaction may involve different properties, trustees, or legal details.

🔹 TRUST STRUCTURE & LIABILITY QUESTIONS

  1. What is a trust in real estate?

Explanation:
A trust is a legal entity that holds title to property on behalf of beneficiaries, managed by one or more trustees. Common types:

  • Revocable Living Trust
  • Irrevocable Trust
  • Testamentary Trust (created via a will)
  1. Can a trust legally buy or sell real estate?

Explanation:
Yes, if the trustee(s) have authority under the trust document. Agents should not verify the legality themselves, but should request:

  • A Certification of Trust
  • A copy of the trust (optional but common)
  1. What documentation should I collect when listing a trust-owned property?

Explanation:

  • Certification of Trust (required in most cases)
  • Trustee’s identification
  • Verification of authority to sell
  • Death certificate (if applicable and trustee is surviving spouse or successor)
  1. What does the Trust Advisory say about agent responsibilities?

Explanation:
It clearly states that real estate agents:

  • Are not attorneys or tax advisors
  • Do not verify the validity of a trust
  • Should recommend the client seek legal/tax advice
  1. Does the trustee need to sign the RPA or only the Trust Advisory?

Explanation:
Yes, the trustee signs the RPA in their legal capacity (e.g., “John Smith, as trustee of the Smith Family Trust”) AND signs the Trust Advisory.

  1. Should I review the trust document myself?

Explanation:
No. You may confirm receipt of trust documents, but never interpret them. Always advise clients to consult an attorney for trust language or authority questions.

  1. Can a trust be the buyer and take title?

Explanation:
Yes. Buyers may purchase in the name of a trust, but lenders often require:

  • Certification of Trust
  • Trustee’s ID
  • Trust review by underwriting
    The buyer’s trustee must sign the Trust Advisory and purchase contract.

🔹 PRACTICAL & COMPLIANCE QUESTIONS

  1. Does escrow need a copy of the Trust Advisory?

Explanation:
No, but escrow needs:

  • Certification of Trust
  • Trustee authority confirmation
    The Trust Advisory is primarily for broker and agent protection.
  1. Is the Trust Advisory needed in probate or conservatorship sales?

Explanation:
No. Use Probate Advisory (Form PA) or other court-authorized documents instead. Trust sales and probate sales are legally distinct.

  1. What if there are multiple trustees? Do all of them sign?

Explanation:
Yes, unless the trust document specifically allows only one trustee to act independently, all acting trustees should sign.

  1. What if a seller refuses to sign the Trust Advisory?

Explanation:
Document that the form was provided and declined, and consult with your broker. In some cases, a seller may need legal counsel before signing anything related to the trust.

  1. Can a trust do a 1031 Exchange?

Explanation:
Yes. A revocable or irrevocable trust can complete a 1031 Exchange if it meets IRS requirements. The advisory encourages consultation with a tax professional.

âś… BROKER CHECKLIST FOR TRUST ADVISORY

Task Required? Notes
Add TA form to transaction âś… Listing or purchase side
Trustee signs TA âś… Acknowledges responsibilities
Agent/broker signs TA âś… Confirms delivery and explanation
Save signed copy in broker compliance file âś… For DRE audit or liability protection
Collect Certification of Trust âś… Provide to escrow & lender
Refer legal/tax questions to professionals âś… Avoid legal advice risk

Disclaimer:
The questions and answers provided are for general guidance only and may not cover all details or apply to every situation. If anything is unclear or you need further clarification, please visit car.org for official resources and the most up-to-date information from the California Association of REALTORS®.

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