Title insurance guarantees or indemnifies an owner of real property against financial loss or damage resulting from a lien, encumbrance, or defect in the title to the real property. In general, title insurance policies protect property owners, and lenders, from costly defects in land titles, such as prior liens or claims of ownership that arise after the transaction.
Commercial Title Insurance
GRS | Title, an authorized Title Insurance Agent for the following companies, offers the most current policies/endorsements available to the market:
The objective of title insurance is to help the parties in real estate transactions to determine their rights and interests, and assure that land transfer is expeditious and secure. Protecting the parties in real estate transactions is the reason title insurance was developed.
GRS | Title provides accurate, timely and complete title search and real estate related search services in every geographic region of the country. GRS | Title prepares, assists and reviews the closing documents necessary to meet our client’s specific needs and requirements.
At GRS | Title, we specialize in transactions of every size, single-site, multi-site and multi-state portfolios. Our experienced teams are comprised of senior-level corporate real estate executives, title insurance executives and seasoned underwriters. We are knowledgeable in every aspect of title insurance underwriting, including the most recent title insurance products, policies, and endorsements available to the commercial market.
Generally speaking, an Owner’s Title Policy is an insurance policy insuring the record owner of the real property from title problems that may arise after the purchase of the property, while a title insurance policy insuring the Lender’s interest in the real property is a Loan Policy of Title Insurance. The title insurance policies will provide assurance to the Insured in the title policy as to ownership of the real property, subject to any defects, liens, and encumbrances, except those listed as an exception in the title policy or, are excluded from the scope of the policy’s coverage.
Both types of title insurance policies will list the name of the Insured, the legal description of the real property, the insured value of the real property and/or loan value, and any exceptions to the coverage contained in the title policy (such as restrictions, easements, leases). Note that a Loan Policy does not provide any benefits or coverage to the Owner, therefore the decision to purchase an Owner’s Policy is independent of the Lender’s decision to require a Loan Policy.
Title insurance policies are underwritten by title insurance companies, such as those with whom GRS Title Services, LLC has an agency agreement, including Fidelity National Title Insurance Company, Commonwealth Land Title Insurance Corporation, Chicago Title Insurance Company, First American Title Insurance Company, and Old Republic Title Insurance Company. Title insurance policies are fairly uniform over the United States, and the title underwriter insurers must carry, at a minimum, the financial reserves required by the insurance regulators to compensate its insured for valid claims made under the title insurance policies. This is especially important for large commercial real estate transactions where millions of dollars are invested based on the assumption that the status of the real property title is valid.
A title search is typically provided by a title company or a licensed attorney and is the basis for providing title insurance products, such as title reports, abstracts of title, title commitments, and title insurance policies.
The title search is the initial process by which official land records are accessed in the public records (i.e., the county clerk or county registry’s office) concerning the real property at hand. Each document evidences an event that occurred as a part of the history of the real property. For instance, a deed records an event of property transfer, a mortgage or deed of trust records a collateral interest in the real property, an easement records an interest in the real property to use the property for a specific purpose (such as utilities or access), and a lien records a claim against the real property in favor of another.
The documents from the search of title are then reviewed by the title company to see how they affect the real property, and a report is prepared to detail the status of title to the real property, i.e., who owns the real property and what interests it is subject. By incorporating our technology systems, we are able to deliver the title commitment and all supporting documents to you in an online process to manage the title data and distribution in an efficient manner.
Closing and Escrow Services
At GRS Title Services, LLC, closing the real property transaction involves several necessary components for the efficient handling of the consummation of the transaction, including a final review of the status of title, that consideration has passed, that all necessary papers have been signed and filed of record, and that all proceeds have been properly disbursed.
As the escrow agent in the transaction, our role as a neutral, third party ensures that your transaction is closed to your satisfaction based upon the closing requirements of the parties. Our knowledgeable professionals expertly handle your transaction, whether it be a simple or complex commercial real estate transaction, and stand ready to assist in solving title and transactional issues. Our strong focus on our customer’s needs requires us to deliver the best quality of service in the closing process that today’s market requires.
Construction Disbursement Services
GRS | Title can assist in the proper disbursement of funds for commercial construction projects. Our services include:
Lien Requirements by State
- Lien notice requirements
- Notice of Commencement requirements
- Notice of Completion requirements
- Required lien language
- Required forms
- Lien perfection/timing
- Escrow requirements
- Title date downs
- Appropriate Endorsements
- Examining draw documents including contractor forms and invoices
- Title updates
- Reviewing and reconciling lien waivers
- Disbursing funds per instructions
- Title policy endorsements
1031 Exchange Services
Internal Revenue Code Section 1031 provides a mechanism for investors to defer the capital gains associated with the sale of real estate via the reinvestment of those proceeds in new property or properties. This process is often called a 1031 Exchange
While an extremely valuable tax strategy in the hands of a real estate investor, the rules and procedures that must be followed to successfully complete a 1031 Exchange can be complex and somewhat confusing. It is important to inform your title company as early in the transaction process as possible that you will or intend to initiate a 1031 Exchange.
GRS | Title is well versed in the steps to carefully complete a 1031 Exchange. Please ask us to assist you in selecting a Qualified Intermediary (a “QI”), sometimes known as an Accommodator. A QI is required to hold the proceeds of a sale as a third party under the relevant IRS regulations during the period between the sale and the purchase of replacement property. GRS|Title Services has relationships with a number of excellent QI’s and have closed many complex 1031 exchange transactions with each of them.
For more information about 1031 Exchange Services or Qualified Intermediaries, please contact us or explore the link below.
The Federation of Exchange Accommodators – https://www.1031.org/
Like-Kind Exchanges Under IRC Code Section 1031 – http://www.irs.gov/uac/Like-Kind-Exchanges-Under-IRC-Code-Section-1031