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Title Insurance
Closing services
O&E Report
Services
Abstracting Services
Commercial Real Estate Transactions
Early Title Assessment
Land
Development/ Property Splits
1031 Tax Deferred Exchanges
Title Insurance
A policy of
Title Insurance is a contract of indemnity between the
insurance company and the owner of an interest in real
property.
Typically the
real property interests insured are fee simple ownership or
a mortgage. However, title insurance can be purchased to
insure any interest in real property including easements,
leases, and life estates.
Title Insurance
is different than most other types of insurance. Where most
insurance is the contractual “coverage” where one party
indemnifies or guarantees another party against a possible
specific type of loss (such as an accident or death) at a
future date, title insurance attempts to detect, prevent,
and eliminate risks and losses caused by title problems
which have their source in past events. Title companies
attempt to achieve this by searching public records to
develop and document the chain of title and to detect
whether there are any adverse claims on the subject
property. Any issues found are either fixed before issuing
the policy or the coverage is specifically written to
exclude those items.
Just as lenders
require hazard insurance and other types of insurance
coverage to protect their investment, most lien lenders will
also require title insurance as security for their
investment in real estate.
There are
two basic kinds of title insurance:
Owner’s
Policy: The owner’s policy insures a purchaser that the
title to the property is free from defects or encumbrances,
except any listed as exceptions in the policy. It covers
losses and damages suffered if the title is unmarketable
(i.e., if the title can not be legally sold and conveyed to
another party), if the property is found to belong to
someone else, if there is no access to the land, or if there
is some defect or lien on the title. An owner’s policy will
specifically list what is covered as of what effective
date. The policy will also contain various standard
exclusions to coverage and also specific exceptions to title
that the title company is unwilling to insure. Title insurance coverage lasts as long
as the insured retains an interest in the land and typically
no additional premium is paid after the policy is issued.
Lender’s
Policy: In addition to the coverage provided on the
owner’s policy, this type of policy also insures the
validity and enforceability of the lien of the lender’s
mortgage or deed of trust. The lender’s policy protects the
lender for the amount of their loan.
Closing Services
For
most of us the real estate transaction is a scary process.
Relax, Cygnetue
Title Services strives to be Minnesota's most thorough real
estate closing professionals. We've performed thousands of
real estate closings for many happy clients and we are
confident that we can make you happy too.
We understand how
stressful it may be for you and we will work with you to
unknot your nerves. You will receive the explanations you
may need so you will feel completely comfortable before
signing any of the many documents. It is our goal to make
you--our valued client--always feel completely in control
during the entire process
Owners and Encumbrances Reports
Cygneture Title &
Abstract, can deliver most O &E reports within 48 hrs. O &
E reports are a valued part of our business….if it helps
you, we will deliver.
See "forms" to
find the Abstracting order form to expedite your order.
Abstracting
An abstract,
sometimes called a title search, is a document that
describes the history of a real estate property. It contains
all of the details of the property's past activity including
current and previous owners, deeds, mortgages, liens,
judgments, tax records, financing statements, encumbrances,
easements, pending assessments, etc. Abstracts are usually
done when a real estate property is being sold. Preparing an
abstract can protect you from many of the title defects that
may have occurred during the history of the property.
Commercial
Real Estate Transactions
Commercial real estate
transactions are never the same. They often require
additional attention because of technical and legal complexities.
These complexities may include: special purchase agreements,
inventories, buy/sell agreements, ALTA surveys, non-compete
agreements, UCC-1 filings, warranties and licensing
requirements, security agreements, etc. Cygneture Title &
Abstract, has the necessary skills and the proven experience
to successfully close these types of complex real estate
transactions.
Cygneture Title &
Abstract, also has the experience insuring land development
loans for many plats throughout Central and Northern
Minnesota.
Early Title Assessment
This is a benefit
to the seller and realtor to determine if there are title
defects as soon as a property is listed.
When the property
is listed, bring in existing title evidence. This could be
the abstract, an Owner’s Policy for Title Insurance, or the
Torrens Certificate.
Cygneture Title &
Abstract will
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Start a file for the property
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Update the title evidence*
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Examine the title
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Provide a draft commitment
This allows the
seller to know in advance the status of title to their
property. If there are problems, this provides additional
time to resolve them and minimize the last minute
“surprises” that everyone hates. The seller can then make a
determination on whether to proceed with resolving any
problems and how they want to accomplish this. A decision
to move forward with title clean up will result in some
charges to the seller/owner.
The file will
then be placed “on hold-examined” until a purchase agreement
is signed by both parties.
When the sale
closes, work continues and the normal fees are collected.
In most cases, if
the property doesn’t sell, there will be no charges.
*The abstracting
work can either be paid for or removed. Where existing
title work is/was significantly out of date, customer will
be informed and normal abstract charges will apply.
Examples might be where no abstract or title insurance
exists, or where it hasn’t been updated for a significant
period of time (15 years or more) and a significant number
of documents need to be added to the abstract.
Title clean up or
other work authorized by owner will need to be paid for.
If property is
Indian Origin, title examination will need to be paid for as
well.
Land
Development / Property Splits
We have worked on
a large number of land developments, ranging from a simple
split to large unit developments. We offer support of the
process according to your needs.
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¨ Help to identify known and potential problem
areas
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¨ Provide information for the platting process
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¨ Provide a master policy to protect the
builder/developer
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Our experience in title problems will help
resolve the problem areas identified
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Our familiarity with property development will
help your project through the approval process
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Our expertise with Legal Descriptions will help
in working with surveyors, the county, and other key
contacts
1031 Tax Deferred
Exchanges
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¨ A GREAT strategy for the taxpayer; Tax deferment
or tax savings
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¨ We can execute the sell side (relinquished
property), and the buy side (replacement property), or
both
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¨ Interface with other intermediaries if part of
the transaction has already been completed
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We can support reverse exchanges (when
replacement property is purchased before the
relinquished property is sold)
Cygneture Title & Abstract cannot advise parties concerning specific tax
consequences of any particular action. We recommend that
anyone considering an exchange seek the advice of a
qualified accountant and/or attorney.
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