A dummy is a person who holds legal title to a property for the benefit of another individual, often to keep the true owner's identity confidential. This arrangement is typically used to conceal ownership for various reasons, such as privacy or legal strategy.
The term "dummy" is commonly used in real estate law, where it plays a role in property ownership and transfer. Dummies can be involved in various legal contexts, including:
Individuals may use legal templates from US Legal Forms to create necessary documents for establishing a dummy arrangement, ensuring compliance with local laws.
Here are a couple of examples of abatement:
Example 1: A business owner may use a dummy to purchase commercial property to keep their identity private, allowing for anonymity in business dealings.
Example 2: A family may use a dummy to hold title to a vacation home to protect the family's privacy and avoid public scrutiny. (hypothetical example)
Examples of state differences (not exhaustive):
| State | Legal Considerations |
|---|---|
| California | Strict regulations on property ownership disclosure. |
| Florida | Allows dummy ownership but requires specific documentation. |
| New York | Dummy arrangements can be used, but must comply with state real estate laws. |
This is not a complete list. State laws vary and users should consult local rules for specific guidance.
| Term | Definition | Key Differences |
|---|---|---|
| Nominee | A person designated to act on behalf of another. | Nominees may not hold title; they act as agents. |
| Trustee | A person who manages property for the benefit of another. | Trustees have fiduciary duties; dummies do not. |
If you are considering using a dummy for property ownership, it is advisable to:
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