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Title Policy
What is a Title Insurance Policy?
Title insurance protects owners and lending companies against defects in the
ownership of real property. ÒTitleÓ is the collective ownership records of a
piece of real estate. It consists of all transfers of real property rights, as
well as all loans that use the property as collateral. Having ÒTitleÓ means
having the right to control and convey a piece of real property.
Why do I need one?
Provided a given property has clear title (e.g. There are no known
encumbrances, obstructions to full ownership and control of the property), it
is much less vulnerable to ownership claims from outside parties and/or unpaid
debts of previous owners.
Clear title and a Òtitle insurance policyÓ is to protect against losses arising
from problems with title to the property that were unknown to you when you
purchased it, is a prerequisite to obtaining a mortgage loan from any
institutional lender, to purchase commercial and/or industrial real estate, in
Georgia.
Possible Title Insurance Policies
There are essentially two types of title insurance policies that protect
against adverse claims to title to real property:
1. An ÒownerÕs policyÓ protects you as the owner of the estate. If your ownerÕs
title insurance policy is issued upon your purchase of the estate, it covers up
to the full amount you paid for the property. If your insurance is issued an any other time, it covers up to the reasonable value of
the property (you must prove your loss).
2. The ÒmortgageeÕs policyÓ protects your lender, the holder of a debt secured
through a lien on your property. The mortgageeÕs title insurance policy covers
up to the full amount of the mortgage, and thus, its coverage declines as the
mortgage is paid down.
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Title Commitment
Why You Need a Title Commitment?
When you set out to buy commercial and/or industrial real estate, you of course
want to know that the person or entity from whom you are purchasing the
property actually owns it (e.g. holds the deed to the property). You want to
make sure that there arenÕt other entities and/or individuals, such as
governmental bodies, contractors, lenders, judgment creditors or the Internal
Revenue Service, with claims to the property, or improvements located thereon.
If these liens or encumbrances are not properly cancelled on the deed records,
or properly satisfied, when the property is transferred to you, they will
remain with the land until they are satisfied, and, as such, may restrict, or
burden your intended use and/or enjoyment, of the property.
What Your Title Attorney Does
Before underwriting your title insurance policy, your title attorney will
search the public records, for a period of fifty years prior, to reveal any
defects in the title and to identify all recorded encumbrances on the title to
the property, such as unpaid property taxes, unsatisfied mortgages, judgments
and tax liens against the current owner or previous owners, easements,
encroachments, restrictions, and court actions.
If you employ an experienced Georgia title insurance attorney to conduct the
title search, you will likely obtain additional security in this regard.
The recorded defects in title are reported to you and your lender prior to your
purchase of the property by way of a title insurance commitment, at which point
you may ask the seller to correct said defects and reject the contract if
he/she fails to do so, or, in the alternative, accept the contract subject to
what ever exceptions are shown on your title commitment.
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Closing Services
The process of buying and/or selling Commercial and Industrial Real Estate is a
complicated procedure. One of the most important aspects of every commercial
and industrial real estate transaction, in Georgia, is obtaining title
insurance.
Why You Need a Closing Attorney
When you are refinancing, or after you negotiate a contract for the purchase of
commercial and/or industrial real estate, one of your next steps is to find a
closing/title/escrow agent (attorney) who will issue a title commitment for
your subject property. The purpose of title insurance is to eliminate risks of
claims against the title to your property or the property that is being
transferred to you. Because a standard title insurance policy serves only to
protect against some potential losses and damages caused by problems relating
to the ownership of the property, you should have, and a lender will require
you, to secure additional coverage. Paxin Closing and
Escrow, LLC, will provide such coverage by issuing endorsements to your title
insurance policy.
What to Look for in a Closing Attorney
It is important to be careful as to whom you choose as your closing/title
escrow agent (attorney) to issue your title commitment and title insurance
policy. You should solicit the services of an experienced Georgia title
insurance attorney, in this regard. There are many reasons to use a title
insurance attorney, including the fiduciary duty owed to you to make known any
re-issue credits to which you may be entitled. Also, it is advantageous, in
terms of time and expense, to have an attorney on your side in the event a
legal issue arises when title is examined or if an issue arises at the closing
of your transaction. Finally, title insurance closing attorneys understand and
are familiar with the expertise necessary to advise their clients of the
quality of title and to make determinations of what to requirements to include,
and what the final policy should look like.
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Escrow Services
Escrow Services Explained
Escrow is a method of closing, in which a third party is authorized to act as
escrow agent and coordinate the closing process. Sometimes the purchase and
sale agreement serves as the primary escrow instructions, for both the seller
and the purchaser. However, other times, a separate escrow agreement is
required. It should contain all of the agreements of the parties thereto. The
escrow agent usually holds money and/or legal documents on behalf of the buyer and/or
seller, only to be released upon specific instructions, dictating specific
occurrences. In the event of a disagreement the escrow can only be amended,
changed or revoked by mutual agreement of the parties to the escrow. The escrow
agent is not authorized to comply with any instructions or demands of any third
person who is not a party to the escrow.
Why You Need an Escrow Agent
Commercial and/or industrial escrow settlement services protect commercial
and/or industrial property owners, lenders or other principals, in a commercial
and/or industrial real estate closing. Commercial and/or industrial escrow
services work hand in hand with title related closing services.
At Paxin Closing and Escrow, LLC, you will have
single-point contact, with industry leading professionals, resulting in a
smooth swift closing process.
At Paxin Closing and Escrow, LLC, we offer the
following service:
1. Coordinated preparation of
all title requirements and payoffs;
2. Coordination of UCC
searches;
3. 1031 Tax-deferred
Exchange, through First American Title Insurance Company;
4. Clear authority combined
with educated, experienced closers;
5. Leading-edge technology
and the ability to quickly and efficiently interact,
nationwide, with our clients;
6. Expert understanding of the need for quick , responsive escrow concerns,
closing and recording services, for the most complex commercial and/or
industrial transactions.
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a Free Quote online
Deposit Services
Why You Need Deposit Services
Every commercial and/or industrial transaction is
unique and the main role of the title/escrow/closing attorney becomes that of a
coordinator and problem solver. Handling commercial and/or industrial closings
requires many skills. The professionals at Paxin
Closing and Escrow, LLC, have the experience and skills necessary to manage the
complex issues that arise in commercial and/or industrial closings.
Our Role in Deposit Services
A commercial and/or industrial transaction is
typically opened by the lender or the purchaserÕs attorneys involved in the
transaction. The specific transaction information required to open a new title
order may be communicated by telephone, e-mail, facsimile
or in person. Please contact us for requirements needed to proceed.
Commercial and/or industrial escrow deposits can include large sums of money,
held short or long periods of time, depending on instruction. Frequently
multiple deposits are required through the course of the transaction, as
contract contingencies are fulfilled.
Why Choose Us
Paxin Closing and Escrow, LLC, has good standing
relationships with many banks with solid financial ratings to insure the safety
of your deposit. Paxin Closing and Escrow, LLC,
currently deposits all operating and IOLTA deposits with Wells Fargo Bank.
All parties will need to execute an Escrow Agreement, provided by Paxin Closing and Escrow, LLC, as well as provide the
taxpayer identification number for the party earning interest, if any.
Paxin Closing and Escrow, LLC, will work closely with
the principals and their representatives to ensure that title issues are
resolved, that authoritative documents are required from the principals, and
that future deposits and release of funds occur within the agreed upon
constraints. An escrow receipt and critical dates e-mail is sent to all parties
upon the receipt of any deposited funds.
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Seller Representation
Why You Need Representation
Transferring commercial and/or industrial real estate can be extremely complex.
Paxin Closing and Escrow, LLC, is an attorney owned
law firm, specializing in commercial and industrial real estate, closing,
escrow and title related services. We are a firm with significant experience
representing sellers in the conveyance of commercial and/or industrial real
estate. We bring vast and varied experience to commercial and/or industrial
real estate transactions and are prepared to insure that the transfer of title
to the property is properly managed.
What We Do
As a full-service closing/escrow/title attorney law firm, we are able to handle
closing/escrow/title matters that arise during the conveyance of commercial
and/or industrial real estate. In addition, we are able to detect and assess
any potential risks or liabilities that may interfere with the title transfer
of commercial and/or industrial real estate.
Title examinations and title searches are much more complex for commercial
and/or industrial real estate than for any other properties. Commercial and/or
industrial properties are far more likely to have liens, property divisions,
and ownership interests that are hidden in the deeds and documents recorded on
the title records.
What to Look For In A Commercial Real Estate Attorney
Once you have made your decision to sell your commercial and/or industrial
property, your next step should be to find a closing attorney specializing in
that field. It is a good idea to engage the services of an experienced
Commercial/Industrial real estate attorney who will owe a fiduciary duty to
ensure your interests are adequately protected during the closing process.
Your commercial/industrial real estate attorney will be familiar with local
laws, tax issues and other legal issues that may arise related to the sale of
your property. You can expect your Georgia commercial/industrial real estate
attorney to assist you with the following tasks during the closing of your
property:
1. Contract review;
2. Prepare lien searches;
3. Prepare title commitment;
4. Order and review ALTA survey;
5. Procure title insurance (for
purchaser, upon request);
6. Request payoffs, from payoff
lenders;
7. Review and prepare affidavits.
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Lender Representation
All lenders, as it relates to lending money on commercial and/or industrial
properties will require a mortgageeÕs title insurance policy, to be paid for,
by the borrower. A standard mortgagee title insurance policy does not cover
everything. Many things are erroneously left unprotected.
Most lenders will require that you also obtain endorsements to your standard
mortgagee title insurance policy. The endorsements that Georgia lenders most
commonly require property owners to purchase are as follows:
ALTA 9.0 (Restrictions, Easements, Minerals) It protects against loss or damage
sustained as a result of present violations of enforceable covenants, notices
of violations of covenants or restrictions relating to environmental protection
that have been recorded and filed in the public records, encroachments unto
land by existing buildings that are located on adjoining land.
ALTA 8.1 (Environmental Protection Lien Endorsement) When a loan is secured by
a Security Deed on property that is used primarily for commercial and/or
industrial purposes, this endorsement provides the insured lender with
protection against loss or damage sustained by reason of loss of priority of
the lien of the insured Security Deed over environmental protection liens
recorded in the public records or created pursuant to certain state statutes.
ALTA 6.1 (Variable Rate Mortgage Endorsement) It
affords the insured lender protection against loss or damage sustained by
reason of invalidity, loss of priority or unenforceability of the lien of the
insured mortgage due to changes in the rate of interest.
Buyer Representation
Why you need Buyer Representation
The purchase of commercial and/or industrial real estate is an important
transaction with many legal implications. The last and most important step in a
commercial and/or industrial real estate transaction is the closing.
Once you have identified the commercial and/or industrial property you desire
to purchase, your next step should be to find a closing/escrow/title attorney
to help you complete the process.
What We Do for You
Many entities, headquartered outside of Georgia, are
currently investing in Georgia commercial and/or industrial properties.
ThatÕs where we come in. Most of our business consists of acting as local
Georgia counsel, for entities headquartered outside of Georgia. A commercial
and/or industrial Georgia real estate attorney will be familiar with local
laws, tax issues, and other legal issues that may arise related to the purchase
of your Georgia commercial and/or industrial property.
You can expect your local Georgia counsel to assist you with the following
tasks during the closing of your commercial and/or industrial real property
closing:
1. Contract review
2. Earnest money
3. Escrow services
4. Title commitment
5. Title policy
6. Deed preparation
7. Document preparation
8. Affidavits
9. Corrective work
10. Re-recordings
11. Recordation
Sebastian Sam Paxin is an experienced Georgia,
commercial and/or industrial real estate closing/escrow/title lawyer who has a
comprehensive understanding of Georgia real estate laws and who works
diligently to provide quality legal representation for his clients.
Paxin Closing and Escrow, LLC, has closed real estate
transactions for commercial and/or industrial properties located in all of the
159 counties, within the State of Georgia.
From our office, in Alpharetta, Georgia we are able to assist our clients in
achieving a successful commercial and/or industrial real estate
transaction. With over twenty years of commercial and/or industrial real
estate closing experience, which includes preparing and reviewing all of the
required closing documents, initiating and performing title searches, resolving
title matters, performing lien searches and conducting and representing all of
his clients at closing, we establish a close working relationship with every
client so that we are able to represent our clientÕs interests effectively.
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Document Preparation
We Do Things Right
Paxin Closing and Escrow, LLC, will perform a title
search and examination of the property, request inspections, make survey
requirements, prepare deed/s, prepare ownerÕs affidavits, and a list of other
tasks necessary and prior to closing your commercial and/or industrial
transaction closing, all according to the requests of our clients.
During the contingency period, Paxin Closing and
Escrow, LLC, will work to gather the information and documents necessary to
prepare the closing statement and closing documents.
Paxin Closing and Escrow, LLC, list of documents and
information required may be revised throughout the course of the transaction as
documents and information are received, the terms of the purchase agreement
change, or if the parties request any additional services or products.
In any situation, wherein the purchaser or seller is not a natural born person
(i.e. entity holding title, single asset, etc.), Paxin
Closing and Escrow, LLC and the title insurance companyÕs underwriter/s must
verify that the entity was properly formed and that the person/s executing the
documents are duly authorized and have the power to sell and/or loan money, or
to purchase and/or borrow money. The transaction cannot close until the
documents are fully executed by a duly authorized representative of the entity.
Protect Your Property
Paxin Closing and Escrow,
LLC will make sure all payoff lendersÕ security instruments are properly
satisfied on the deed records. It is upon closing, that it is critical that all
cancellations and/or quit-claim releases are properly
prepared, executed and recorded. The last thing you want to deal with, five
years later, when you sell your commercial and/or industrial property, is
cleaning up the deed records, on an improper cancellation, for a loan, that was
paid off and recorded five years ago.
Paxin Closing and Escrow, LLC will obtain information
from the seller for all existing liens which will have
to be satisfied and cancelled at closing. This includes information of
mortgages, security deeds, tax liens, judgments and defects in title. Provided
a seller is deceased, probate documents will be needed and additional
affidavits and recital will need to be added to the deeds. Provided a seller is
bankrupt, we will need a certified copy of the bankruptcy order.
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Survey Requirements
What is an ALTA/ACSM Land Title Survey?
An ALTA/ACSM Land Title Survey is a boundary survey prepared to a set of
minimum standards that have been jointly prepared and adopted by the ALTA/ACSM.
The ALTA/ACSM Land Title Survey shows improvements, easements, rights-of-way
and other elements impacting your commercial and/or industrial property.
Your ALTA/ACSM Land Title Survey will provide the title company with the
information required to insure the title and improvements to the high degree
that a commercial and/or industrial development can require. A Table of
optional elements is included in the ALTA/ACSM standards. A careful review of
the elements from the optional ÒTable AÓ is helpful in delineating a clear
scope of the land surveyorÕs services.
Requirements for an ALTA/ACSM Land Title Survey
A current title commitment is required before an
ALTA/ACSM Land Title Survey can be completed. The surveyor will refer to the
title commitment for the legal description of the property and for the legal
description of any encumbrances (exceptions). Areas of ownership, improvements
and encumbrances will be shown graphically. Provided the survey discloses any encroachments,
they should be shown graphically, and a note indicating the nature of the
encroachment may also be added.
Certification language, on the ALTA/ACSM Land Title Survey, should include the
names of the affected parties, including, as appropriate, the buyer, seller,
Title Company and lender. Your surveyor must work in close association with
your title insurance attorney, as the surveyor and the title insurance lawyer
are relying on each otherÕs work to create a comprehensive ALTA/ACSM Land Title
Survey.