An executed remainder is a legal term that is utilized when a transfer of a particular property occurs. It is often used when someone transfers the title to a property, but the transfer will not come into effect until some future event or date. There are certain conditions that need to be met for an executed remainder to be valid.
The Most Common Form of Executed Remainder
The most common form of an executed remainder occurs when an individual owns a piece of property, and they decide to transfer it to a third party. The transfer happens now, but the actual title of the property will not be transferred until some future event or date. For example, a person may decide to sell their home and give the buyer possession of the house immediately, but the actual ownership will not be transferred until the buyer pays off the loan or pays the full amount of the sale price.
Protecting Yourself With an Executed Remainder
Executed remainders can be a great way to protect yourself when you are making a property transfer. By using a remainder, you can ensure that the legal title of the property will not be transferred until certain conditions have been met. This can also be beneficial if you want to ensure that the transfer is completed properly and within a certain time frame. If the conditions of the remainder are not met, then the property title remains in your name until those conditions are satisfied.
Using an Executed Remainder: A Word of Caution
As with any legal document, an executed remainder should be thoroughly reviewed by an experienced attorney before it is signed and legally binding. This will ensure that the document contains all the necessary provisions and protects your interests. It is important to note that once an executed remainder is signed, it cannot be changed or revoked, so it is best to ensure that all the details are adequately addressed before signing it.
Conclusion
Executed remainders can be an effective way for business owners to protect themselves in the event of a property transfer. It is important to make sure all the details are taken into account before signing an executed remainder and to hire an experienced attorney to review the document. By understanding this legal concept, you can ensure that your property is secure and any transfers are handled correctly.