If you don’t frequently buy and sell property, you may find yourself unaware of how important it is to work with a true quality title service company. Searching for quality real estate title companies usually appears on your to-do list only when buying or selling a home, something most of us don’t do often.
However, it’s for that very reason you should take the search seriously when the time comes. A real estate transaction is a major financial commitment, commonly a lifetime commitment involving a property you have or will call home.
Those who aren’t in the real estate business may have never even heard the term “1031 exchange,” but that doesn’t necessarily mean it is of no use to you. In particular, a 1031 Exchange could be particularly useful if you’re planning to sell one investment property and purchase another.
To be clear, the 1031 exchange, or “like-kind exchange,” must follow strict rules set forth by the Internal Revenue Service. (Check with your tax attorney and/or your CPA to determine what these rules are.)
A very important concept to understand as part of home ownership is the importance of home title insurance. An owner’s title policy protects the buyer, as opposed to lender’s title insurance. As the name implies, the latter provides coverage only to the lender. If a title’s chain of ownership is challenged this difference can be a very significant distinction.