Title Insurance

Can a Buyer "negotiate" the cost of an Owner's Policy?

Although you may be eligible for a discount on your Title Insurance Premium, in Utah, the insurer has no authority to negotiate rates. Rate tables & schedules, which are filed with Utah State Insurance Department offices, are public information, and are adhered to by all Title Insurance Companies. To determine eligibility for a discounted Title Insurance Premium, we need to determine the last policy date. Discounts are often as much as 40% and can be determined in a few minutes by a simple phone call to one of our title searchers.

Why should I hold onto my HUD Settlement Statement?

A signed copy of the HUD Settlement Statement should be kept in a safe place -- preferably, the same place the client keeps all other important paperwork. The Seller should retain the HUD statement copy for AT LEAST 7 years for IRS/tax purposes. The Buyer, however, should hold on to the HUD statement copy for as long as he or she owns the property. There are many occasions when trying to resolve title matters/discharge problems, when a subsequent Title Company will want to know information about the purchase. Was a mortgage paid off? Who was the Title Company that handled the closing? Was Owner's Title Insurance purchased? Because of the time-sensitive nature of real estate closings, the faster the old HUD statement is produced, the faster the Title Company can begin to work on addressing problems.

If the Property Search is accurate, why do I still need an insurance policy?

Owner's Title Insurance and a Title Search are like apples and oranges -- they're two entirely different things. And both are necessities.

A Title Search is only as good as the records kept in any County Registry of Deeds and Probate Court. If a problem does not appear in the records, or appears before the established cut-off date for the search, you, not the Title Company, are at risk and liable to resolve any problem(s).

In stark comparison, Owner's Title Insurance protects you against the unforeseen -- the many HIDDEN RISKS which can affect a property title, EVEN IF a professional, meticulous and accurate Title Search is performed. For example: looking at records in a Title Search will rarely uncover forged documents, documents signed by a minor or someone under duress. Just as important, there can be mortgages, liens, easements and restrictions on a property -- NOT found due to data entry or indexing errors in the County any one of these problems could prove financially costly -- unless you're protected by Owner's Title Insurance, which safeguards your vital interests (and your peace-of-mind).

Tenants-in-Common vs. Tenants with Rights of Survivorship

When two or more people take title to a property, what happens when one of them dies?

If you take title to a property as JOINT TENANTS or JOINT TENANTS WITH RIGHTS OF SURVIVORSHIP, the surviving owner(s) inherit without the need for probate.

If you take title to a property as TENANTS-IN-COMMON or if the deed does not state any 'condition of tenancy', the surviving owner(s) must go through the probate process. This may take considerable time, since either a Will (or if no Will exists, state law) determines who gets the deceased person's share of the property.

Avoiding probate can save time and money. But there may indeed be situations where Tenants-In-Common is the best way to file. When in doubt, call us. We'll help you determine which title is best in any given situation.

1031 Tax-deferred Exchanges

What is a 1031 Tax-deferred Exchange?

This is a simple, strategic method for selling one qualifying property and the subsequent acquisition of another qualifying property within a specific time frame. The entire transaction is memorialized as an exchange and not a sale. This allows owners to defer capital gains taxes by selling a property, identifying a like-kind replacement property within 45 days, and closing escrow on the new property within 180 days.

What is "like-kind" property?

In order to qualify for an exchange, all property involved must be "like-kind," this means that it has to be the same type of property. For example, you can exchange an "improved" investment property for another "improved" investment property or unimproved land for unimproved land.


Any type of property can be exchanged, which is something most people don't know. You can even exchange an airplane for an airplane and defer taxes on any profits from the sale.

Can one property be exchanged for several?

Yes, one or more relinquished properties may be exchanged for one or more replacement properties, subject to specific rules and limitations.

When will a gain or loss be recognized?

In a successfully completed 1031 Exchange, the gain is not recognized until the property relinquisher (the "investor", who purchases the replacement property) disposes of the replacement property in a fully taxable transaction. There is no time limit, and if the investor continues to execute 1031 Exchanges, the gain may never be recognized.

Can a Corporation or Partnership participate in a 1031 Exchange?

Yes! The code does, however, explicitly excludes stocks and partnerhsip interest from being considered like-kind to real estate.