A deed transfers an ownership interest, and a deed of trust secures the loan repayment, allowing the lender to foreclose in the event of a loan default. Accordingly a deed of trust given by a step dad to the daughter, would suggest that the daughter loaned money to the step-dad, who remained the property owner. If in fact you meant to say that the daughter recorded a deed transferring ownership from the step dad to the daughter, then the daughter would be the owner, and the step-dad would not have the right to give anybody a bill of sale on the property he no longer own. As a general rule, a verbal agreement to sell real estate is not enforceable. Likewise a written agreement prohibiting the owner from selling property is unlikely to be enforceable. Finally, an agreement to purchase property from someone who is not the owner does not enforceable. The simplest solution is for you to try to get as much free rent as possible to offset the amount of your investment against the fair market rental value.
Answered on Jul 16th, 2013 at 10:28 PM