An important message from Emily McManamon, Vice President:
2 HR CE Course | Real Estate & Title Law | October 5th 12-2:30
Details Below!
Please email Emily to RSVP! (emily@erieviewtitle.com)
What is Closing Protection Coverage?
All title companies in the state of Ohio are required to offer Closing Protection Coverage. If a customer opts to purchase the coverage, the coverage will protect any of the funds the client brings to the transaction, if their funds were misappropriated or stolen by the title company or one of their employees. It is important to note that lenders always opt for this coverage to protect their funds. The money collected for this coverage is given to the title company’s underwriter, not the title company.
Closing Protection Coverage protects clients’ funds during the transaction whereas Title Insurance protects the buyer’s interest in the property after the transaction closes and for as long as they own the property.
We are Erieview!
ERIEVIEW Title Agency has no affiliation with ERIE Title Agency. Without the “View”, it is not Erieview. In addition, like many other title companies, Erieview Title has an ABA called Erieview Select Title. Please know that Erieview Select Title has no affiliation with Erie Title Select. Again, without the “View,” it is simply not us.
Syllables on contracts matter, but service matters most of all. Reach out anytime if you have questions or would like to know more about ABA.
Thank you for the opportunity to work with you and your clients!
As always, if there are any questions, please fee free to reach out to our office!
1031 Exchanges can be a very useful tool for investors. 1031 Exchanges are commonly used to defer capital gains taxes on the sale of an investment property. In all cases, a Qualified Intermediary would work with the title company in order to provide 1031 Exchange Documents to be executed, hold funds from the sale and then apply those funds to the next property purchased by the seller.
There are a good number of 1031 Exchange Companies that Erieview Title has worked with over the years. Old Republic Exchange Company is one of those. The video below provides a great overview of the 1031 Exchange Process and its benefits.
In addition, there is a brochure available here with additional information. As always, feel free to reach out to us! We are happy to connect you with a Qualified Intermediary that can help you or your client with questions they may have.
Picture this….you have the best new listing! In this market, it will definitely go into multiples. The sellers are foreign and live in Brazil. Logistically that complicates things a little with closing and communication, but you’ve got this! Is there anything else you should plan for?
YES!
FIRPTA – you should plan ahead and communicate with your seller right away.
If your seller is foreign, it is critical to advise your seller that any foreign person selling a U.S. real property interest should address FIRPTA requirements with their tax professional at the start of the selling process to prevent issues or delays at closing.
What is FIRPTA?
The Foreign Investment in Real Property Tax Act of 1980 (FIRPTA) When a foreign-owned U.S. real property interest is sold, the Foreign Investment in Real Property Tax Act (FIRPTA) requires that a tax equal to 10 or 15 percent of the “amount realized” by the foreign person upon disposition be remitted to the Internal Revenue Service (IRS), unless one or more exemptions apply to the seller on the transaction.
What is the withholding rate?
• When the property will be used by the buyers as a residence, the withholding rate of 10 percent applies provided the “amount realized” from the sale exceeds $300,000 but does not exceed $1,000,000.
• If the “amount realized” exceeds $1,000,000, the withholding rate is 15 percent.
• When the property will be used by the buyer as a residence, no withholding is required if the “amount realized” from the sale is $300,000 or less.
• When the property is not acquired to be the buyer’s residence, the withholding rate is 15 percent of the “amount realized” from the sale.
How can the real estate professional prevent closing delays?
• Advise foreign persons selling a U.S. real property interest to seek advice from a licensed and qualified tax professional.
• Let the title company know right away so they can prepare documents accordingly on their end.
How can a seller facilitate the process?
• Seek the advice of a licensed and qualified tax professional.
• Be proactive. Determine if there is an exception from withholding. Consider obtaining a withholding certificate from the IRS to determine what the seller actually owes. This could greatly reduce the amount withheld at closing. This process can take up to 90 days or more. Advise the seller to start this process early
Interested in the steps we as the title agency take with FIRPTA?
Please feel free to download the below document:
As always, reach out anytime you have a question regarding this or any other real estate scenarios! We love to help!