Title insurance companies provide the assurance that you have purchased a property, that you are the owner of that property, and that you have marketable title. But how do you guaranty your title in a 1031 exchange?
When acquiring replacement property oftentimes people are worried about the transactional expenses and they're looking to cut expenses anywhere they can.
One place that you don't want to cut back on is title insurance. When you go to sell your property in the future you're going to want to have some proof that you're the owner of the property and that it is free of liens, encumbrances, and title flaws that may have existed before you acquired the property.
Title Insurance Commitment
We highly recommend that in conjunction with the purchase of any replacement property you get a title insurance commitment that shows any adverse claims, any liens, any judgments that may encumber the property, and that you have those all cleaned off as part of the process of closing on your new replacement property.
- 1031 Hotline: If you have questions about guaranteeing title in a 1031 exchange, feel free to call me at 612-643-1031.
Defer the tax. Maximize your gain.
© 2017 Copyright Jeffrey R. Peterson All Rights Reserved