Whenever you sell business or investment property and you have a gain, you generally have to pay tax on the gain at the time of sale. IRC Section 1031 provides an exception and allows you to postpone paying tax on the gain if you reinvest the proceeds in similar property as part of a qualifying like-kind exchange. Gain deferred in a like-kind exchange under IRC Section 1031 is tax-deferred, but it is not tax-free. To qualify as a Section 1031 exchange, a deferred exchange must be distinguished from the case of a taxpayer simply selling one property and using the proceeds to purchase another property (which is a taxable transaction). Rather, in a deferred exchange, the disposition of the relinquished property and acquisition of the replacement property must be mutually dependent parts of an integrated transaction constituting an exchange of property. Taxpayers engaging in deferred exchanges generally use exchange facilitators under exchange agreements pursuant to rules provided in the Income Tax Regulations.

An Abstract is a document that contains the condensed history of the property. It may provide information such as the original land information, plat map, lot & block diagram, subdivision restrictions, history of the property, recorded deeds, recorded mortgages or liens and satisfactions, and any legal actions involving the property. If your property has an abstract and you had an event such as a satisfaction of a mortgage, bring it into AJS Title where we can review and update it for you.

A “closing” is the final step in the sale of real property where title is officially transferred from Seller to Buyer. Sale documents are signed in exchange for the funds to be paid. Taxes, fees, and all other costs of the real estate transactions are paid through our closing services. At AJS Title, we strive to make your closing go as smoothly as possible.

A construction loan is a short-term, interim loan to pay for the building of a house. As work progresses, the lender pays out the money in stages. AJS Title assists the lender with loan documentation and requires signatures only once through the construction process.

A construction project can involve many different contractors, suppliers, and vendors. Banks lending money on construction projects need to make sure that there are no intervening liens filed against the subject real estate at any time prior to the buyer paying off the loan in full. Construction disbursing is the process of incrementally paying contractors, suppliers, and vendors for their services to minimize the risk of any of them filing a lien against the property for non-payment.

AJS Title will acquire the necessary information and create the necessary documents required for a successful closing. Following closing, all documents will be properly recorded and all fees and taxes will be timely paid.

Lenders often require plat drawings, or “plat maps.” As part of our closing services, AJS Title provides this service to facilitate the real estate transaction.

A Title Examination reviews all public records affecting title to the subject real estate parcel. A Title Examiner reviews ownership, liens, judgments, bankruptcies, and taxes which may impacting the property. It is vital that a Title Examination occurs prior to a real estate transaction.

Title insurance is principally a product meant to protect an owner’s or lender’s financial interest in a parcel of real property against loss due to liens, title defects, or other matters. Title insurance will defend the policy holder against a lawsuit attacking the title of the insured real estate, or will reimburse the policy holder against actual monetary loss incurred up to the dollar amount of the policy. Nearly all institutional lenders require title insurance to protect their interest in the collateral used to secure their loans. Many owners also obtain a title insurance policy to protect their ownership interests. Such an owner’s policy often replaces the need for an abstract when refinancing or selling their property. A one-time premium is charged for either a lender’s or owner’s title insurance policy. The premium amount is based on the value of the property, or the amount of a loan using the property as collateral.

A Witness Closing (or notary service) primarily is for the convenience of the Buyers and Sellers. Either or both parties may prefer a Witness Closing to avoid the time and expense of traveling to a central location.