Title insurance provides homebuyers and lenders with vital protection against losses from certain title issues including forgery, fraud, and liens…problems that might limit a homeowner’s use and enjoyment of their property. After completing a title search and thorough examination of the records, Home Town Abstract & Title will issue a Commitment to Lender and/or Purchaser. The Commitment serves to identify any potential title risks that need to be addressed, such as unreleased mortgages, mechanics' liens, tax judgments, outstanding child support liens, pending bankruptcy or divorce proceedings, probate issues and various other issues. The Commitment also discloses items the property is subject to, such as easements, covenants and restrictions. Home Town Abstract & Title can insure any property in the State of Minnesota. We issue full ALTA Title Insurance Loan Policies, Owner's Policies and Combination Policies.
Abstracting prices can vary due to a complex history of the title or how many records pertain to the property. It is best to call Jamie at our office for a quote.
An exchange involves an individual who desires to sell property and replace it with "like kind" property. Home Town Abstract & Title works with Old Republic Exchange Company to handle your exchange requirements and process.
The like kind provision for real property is quite broad, and includes land, rental, and business property. Any of which, can be exchanged for the other. 1031 exchange allows investors to reinvest their capital in the most advantageous like-kind investment while deferring the capital gains, depreciation recapture and state income tax consequences.
It provides that no gain or loss is recognized on the exchange of property held for productive use in a trade or business or for investment ("relinquished property") if the property is exchanged solely for property of like kind that is to be held wither for productive use in a trade or business or for investment ("replacement property").
The type of property must be in productive use in a business (depreciable property), and can only be exchanged for the same type of property.