These are original documents we\'ve been developing over the past year to educate Realtors, US Investors, Foreign Investors, distressed home owners and Retiring Baby Boomers. You can see the video versions at either facebook.com/celticwindinvestment or on youtube at youtube.com/mikenweston/.
2. Contracts and Land Trusts: a brief history
Basic Requirements of a Land Trust Agreement
Variety of Land Trust Agreements
Investor Agreement Analysis
Attorney’s Agreement Analysis
County Agreement Analysis
Hybrid Agreement Analysis
Notas do Editor
The responsibility of writing a contract is ominous because it is law making.
A contract that you write for yourself and which another person agrees to is a matter of personal law. In a person’s life, the occasion inevitably presents itself to write a contract just to be sure of an agreement between you and another party. The occasion can be a marriage, an automobile purchase, a tax return or the creation of a business. In this case we focus on the discussion of the documentation used in the creation of a Florida Land Trust.
A Land Trust Agreement is, in part, one such occasion. This workshop is not intended to make any of you lawyers. It is intended to give you a better understanding of the documentation that arises under the conversion of property into a Land Trust. My Name is Michael Belgeri, I am the course presenter for this on-line workshop
The objectives of this course are provide you with a brief history of where The Land Trust came from and how it evolved as a Florida Statute.
Next we will review the method of contract writing and the three sources we used to create our Land Trust Agreement content. The contract will then be reviewed paragraph by paragragh. Finally we will show you how to hybridize an Agreement for greater use in the real world.
Trusting…It’s a simple act we all take for granted. You walk into your favorite coffee house, order your espresso, latte, or coffee-black and hand over the price that is posted on the wall. You get the coffee; they get the buck. You’ve just executed a personal contract and no attorney was required.
The vast majority of contracts ARE like that, oral contracts, including this ‘consumer contract’ to buy coffee. When money is the offer by one of the parties, a contract is simply a straight exchange—this cash for that thing—done deal. The deal has been completed as the money has changed hands.
When it comes to buying land, or a property developed on land, from someone else, there are a few other issues involved, even if you are going to pay cash for the purchase. There is one simple reason for that complication.
The Supreme Court has held that the every state has the power of eminent domain—the power to take private property for "public use".
The Takings Clause, the last clause of the Fifth Amendment, limits the power of eminent domain by requiring that "just compensation" be paid if private property is taken for public use. To maintain your domain as Private property in light of every states absolute authority we are “given Title” to property for which we are charged annual taxes which are used by the state and our communities to maintain the community. Title, or ownership to property is given and assured by the state, privately Insured and registered with the county. Our individual rights under the constitution ‘s Fifth Amendment and the courts give our property ownership some degree of protection in that manner… But, it wasn’t always that way.
Most of the Laws that govern contracts either with each other or with the state, and, in particular, govern property we own, have been passed down through government statutes and court rulings from English Common Law. There was one small issue with English Common Law in the United States.
The problem with English common Law was that it grew out of a feudal system of monarchy—Kings ruled in England. All land in England belonged to the King not the state. The Ruler of England gave the land to those who were family and friends. In return they sent him money (taxes) and they sent him soldiers to fight his wars.
In 1536, 71 years before the first Englishmen arrived in North America, Henry VIII was having trouble with the Pope’s ownership of monasteries in England and his barons because the Pope didn’t answer to Henry and because the barons didn’t want their sons to be in his army. And neither the pope nor the barons didn’t like paying a portion of their income as “land lords” as taxes to the King.
To protect themselves from the King, the “Catholic Church” and land holder’s attorneys were using an ancient Roman Law. They had begun creating land contracts, or “Trusts”. Under the Trusts, both the monasteries and the Land lords had a form of asset protection against the King.
These trusts had a Trustee, the Baron, and a Beneficiary, the Baron and his kin. Because of these legal ‘obstructions’ the King would no longer have the right to seize either the Church’s monastery and lands or the land lord’s properties…. For King Henry this Land Trust system was a threat to his rule and in 1538 he made Parliament change English common law.
Parliament passed a law in 1538 called the “Statute of Uses” which effectively voided the Pope’s ownership of British Land and the English Land Lord’s or “Baron’s” Asset Protection Land Trust. And even though British rule of the colonies ended, the Statute of Uses and that particular right of Kings came to Florida and all of the other states as law.
In 1828 while still part of Spain and 17 years before Florida became a state, the Statute of Uses was made part of Florida Law. If you read Florida Statute 689.09 it doesn’t even make much sense. The key word of its non-sense is the term “ENFEOFFED”, a term we don’t here much today. ENFEOFFED, comes from the feudal system of European monarchies. Enfeoffment was the action by which a person, usually a family member, was given land by his monarch in exchange for a pledge of service.
The Statute of Uses as adopted in Florida reads like it was written by Henry VIII himself and it was part of Florida Law even before Florida became a State.
In 1891 the Legislature of Illinois enacted a Land Trust Act so that the Railroad barons could privately acquire land. That law was followed by a California Land Trust act. Seventy-two years later, but for a similar reason, the Lawyers of Walt Disney lobbied the Florida Legislature to overthrow the British Common Law Statute of Uses that we’ve just seen is non-sense. It took 45 more years to give us the current Florida Statute 689.071, the Florida Land Trust Act as it is today.
While 49 states in the U.S. have some form of Land Trust Law, Only Illinois actually teaches Attorneys Land Trust Law. Most of Florida’s few court rulings about Florida Land Trust depend on Illinois court rulings.
The Disney Attorney’s lobbied the 1963 version of the Land Trust Act through the State in order to acquire the property necessary for Disneyworld to be built without property speculation in the area.
Finally in 2008 the Legislature deemed beneficiaries of a land trust free of liability for the land trust, just as the Trustee had been given that status in 2002. Today Florida has one of the most liberal land trust laws in the country, but, unfortunately, few attorneys who understand it which brings us back to you, your property and your land trust contracts.