In this article, we'll talk a bit about the documents you need to be aware of, and the paperwork you'll fill out, in completing a transaction with Fabrica.
Reviewing Property Papers
First, every property on Fabrica is held within a trust. The trust agreement is stored online, signed by the person who first brought the property into the Fabrica system. If the property has been transferred after the initial "load," you'll find amendments explaining the history of the digital title.
Next, in order to transfer the property into the trust, there will have to have been a trust transfer deed. The trust transfer deed is recorded at the appropriate county and puts the world on notice that the property is held within the trust, and also allows any interested party to find the information they need to access and review the trust.
These are the two documents that set the property up for digital title. Next, we'll talk about the documents that allow that title to transfer.
The Transfer Documents
Buying a property on Fabrica is as simple as a few clicks of the mouse, entering some information, and confirming the transaction. Behind the scenes, however, a few things to need get done and this includes some paperwork that acts to protect you and your real estate.
Because purchasing property on Fabrica means purchasing a trust, the first document that will be filled out is called an assignment and amendment of trust. This document explains that the transfer of the digital title acts as an "assignment" or a transfer of the seller's rights and obligations under the trust to you as the buyer. In addition, it allows you to amend the trust agreement to replace the seller's information with your own, making you the property owner within the trust. When a seller puts a property for sale, they pre-sign this document, allowing the buyer to complete it in conjunction with the transfer.
Finally, we help you complete the required property transfer documentation needed by the county assessor, as well as documentation required by the IRS.
Want to learn more about what to think about when buying property on Fabrica? Follow this link on how to review a property on the platform.