Signed, Sealed, Delivered: What to Sign and Not to Sign when it Comes to Self-Directed Investments

By Elsie Dudukovich2 Comments

When it comes to conducting investments in your self-directed IRA, you will see many similarities with the way you handle investments outside of a retirement account.  Evaluating opportunities, negotiating terms, consulting with your advisors, and making arrangements with third parties are common elements of transactions whether using IRA or non-IRA funds.  This aspect is part of the beauty of a self-directed IRA.

Still, there are differences between the two worlds and it is in those nuances where you need to be alert to the direction the process is taking. 

Guide to document signing
One important detail is what investment documents Equity Trust must sign on behalf of your IRA and what documents you must sign on behalf of your IRA. 

What Equity Trust signs: All recordable documents, documents for tangible assets or secured by tangible assets, and closing documents for real estate and mobile homes must be signed by Equity Trust Company on behalf of your IRA. 

What you and Equity Trust sign: When it comes to agreements  - such as lease agreements, operating agreements, or purchase agreements - and unsecured notes, your signature is required and Equity Trust countersigns. 

Other resources
Equity Trust offers information on what to watch for and what to make sure is happening during the course of your investment’s purchase or sale on our website. One thing you will notice is all of our Direction of Investment forms come with a cover sheet detailing what supporting documents are needed to process your investment.  This can serve as a handy checklist to help make sure you have what you need for your investment. 

Remember, when completing a Direction of Investment form, make sure you list what documents you want Equity Trust to sign in the section provided, which grant us permission to take that action.  We also encourage our clients to reach out to their First Class Team by phone or email if they have any questions on matters of titling, documents needed, proper Equity Trust forms, and other such matters.