What Is a Land Trust in Florida?

Short answer

A Florida land trust is a written agreement in which a trustee holds recorded title to real estate while one or more beneficiaries keep the real control and benefit, under the Florida Land Trust Act, F.S. 689.071, and F.S. 689.073 (2026 statutes, as of November 2026). Owners use it mainly for privacy and estate planning, but most residential mortgage lenders will not close a home loan with title in a land trust, so the property usually has to be deeded to the borrower first.

Definition

F.S. 689.071(2)(c) defines a land trust as any express written agreement by which a use, confidence or trust is declared of any land, with title vested in a trustee by a recorded instrument. The public record shows the trustee's name, not the beneficiary's.

Worked example

Example only: a Miami owner deeds her house to "Jane Smith, as Trustee of the 123 Main Street Land Trust." Later she wants a conventional refinance. The lender tells her title must be in her own name (or in a qualifying revocable living trust) before closing. Her attorney records a deed from the trustee back to her, the loan closes. Before re-titling later, she should ask her attorney about the loan's due-on-sale clause.

Why most home lenders won't lend to a land trust

Most residential loans are sold to Fannie Mae or Freddie Mac, or insured by FHA or VA. Fannie Mae's Selling Guide (B2-2-05) makes one trust exception to its individual-borrower rule: an inter vivos revocable trust created by the borrower, revocable during the borrower's lifetime, with a trustee who has power to mortgage the property and a title policy with no exceptions about the trustee holding title.

A land trust is a different tool. The trustee is often a third party, the beneficial interest may be treated as personal property under F.S. 689.071(6), and the agreement is usually unrecorded. That does not fit the revocable living trust box, so in practice:

• Most lenders ask that title be deeded from the trustee to the borrower before closing.
• Some lenders accept a qualifying revocable living trust instead.
• Business-purpose loans, such as DSCR loans, may be more flexible on vesting, depending on the lender.

Check vesting early: the title search will show the trustee as owner.

Homestead and land trusts: what the statutes say

Two separate homestead questions come up, and the statutes answer only one directly.

• Tax exemption: F.S. 689.071(8)(h) allows the homestead tax exemption for a beneficiary's principal residence held in a land trust. F.S. 196.041(2) also treats a recorded beneficial interest for life as equitable title for the exemption.
• Creditor protection and inheritance limits: the Florida Constitution's homestead protections and rules on who can inherit a homestead raise separate issues. Section 689.071 does not settle them, which is why an attorney should review the trust agreement.

Ask your attorney and the county property appraiser before recording any deed.

In South Florida

Florida is one of the few states with a specific land trust statute. F.S. 689.073(1) gives the named trustee full power to deal with the title, and 689.073(2) says people dealing with the trustee do not have to look into who the beneficiaries are. For homestead, F.S. 689.071(8)(h) says a beneficiary's principal residence is entitled to the homestead tax exemption even though a trustee holds title, if the beneficiary otherwise qualifies under Chapter 196. See homestead exemption. This page is general information, not legal advice; talk to a Florida real estate attorney before creating or changing a land trust.