(a) A person, including a trustee, may convey real property to a trust whether or not a trustee of the trust is named as a grantee in the instrument of conveyance. A trustee of a trust may convey real property from a trust whether or not a trustee of the trust is named as a grantor in the instrument of conveyance.
(b) In a conveyance under (a) of this section, notice of the existence of the trust does not affect the status of a purchaser as a bona fide purchaser.
(c) Real property that is owned by a trust and that is purchased by a bona fide purchaser from a person in the person's capacity as trustee of the trust is acquired free of any claim of the beneficiaries of the trust.
(d) Notwithstanding other provisions of law, a trust instrument may not change the effect of (c) of this section.
(e) In this section,
(1) "bona fide purchaser" means a person who purchases real property for value from a trust and who
(A) has not knowingly been a party to fraud or illegality affecting the interest of persons who are parties to the purchase transaction or beneficiaries of the trust;
(B) does not have notice of an adverse claim by a beneficiary of the trust; and
(C) has acted in good faith in the purchase transaction;
(2) "conveyance" means a conveyance made before, on, or after August 9, 2000;
(3) "purchaser" means a person who acquires real property by sale, lease, mortgage, pledge, or lien, or who otherwise deals with real property in a voluntary transaction other than by making a gift;
(4) "real property" includes an interest in real property;
(5) "value" means acquisition of property
(A) in return for a binding commitment to extend credit;
(B) as security for or in total or partial satisfaction of a claim that existed before the giving of the security;
(C) by accepting delivery of the real property under a contract that is for the purchase of the real property and that existed before the delivery; or
(D) in return for other consideration sufficient to support a contract.
Section: Previous 34.25.010 34.25.020 34.25.030 34.25.040 34.25.050 34.25.055 34.25.060 34.25.070 34.25.080 34.25.090 NextLast modified: November 15, 2016