RealTown's RealTalk

I've helped a client assemble over 800 acres near Lexington, KY over several years. Now my client wants to put the land into a conservancy with the help of North American Land Trust. The plan is to market tiny per centages of the property to 12 "investors" and, in return for their investment allow them a 20 ac. home site. The remaing land will be endowed with a foundation, funded by the owner and 12 new "members" to remain for perpetual equestrian use.

It's an exciting marketing opportunity, but the "expert" at the Trust (out of Phila.) says he can market the development to investors. He is neither an attorney nor a KY licensed agent.

My concerns, and questions are, is he acting as an agent without a license and wouldn't (or couldn't) this expose the Owners (my clients) to huge amounts of liability? The trust principal could really only be kicked out of the state, so to speak, but the Owners could well be left "holding the bag."

Does anyone have any experience selling land trust/conservancy shares to investors?

I'm also planning on discussing this with an attorney at our Real Estate Commission.

Bill Kraatz
Realty Executives Champions
Florence, KY 1-888-212-5857 Bill@BillKraatz.com