traditionalabstractpa

[traditionalabstractpa]

How To Ensure Settlement Services in Allentown and Lehigh Valley, PA?

Conducting a real estate transaction requires special expertise. There are usually multiple parties involved in the process, making it advisable for the prospective buyer and seller of a plot of land or property to hire a professional to take care of the nitty-gritty. While real estate attorneys deal with all land and property-related matters during the ownership change process, it may become important for the concerned individuals to contact an abstract company in Allentown and Lehigh Valley, PA. ​ It is also important to be aware of the terms used at each stage of the property transaction. It suffices to know that the abstract or abstract title refers to the collective legal documents that include the details of the transfer of the said property. Thus, the entire chain of changing ownership is revealed, from the first owner to the present one. Moreover, the legal documents or abstract title also mention the liens on the property.

The abstract title is usually held by the present owner. It is the responsibility of the abstractor or the abstract title company to delve into the existing records and prepare a list of the records found against the property. Such a role is usually undertaken by a qualified attorney who may or may not be associated with the title company. It is the onus of the legal professional to research the relevant information and make additions/alterations to the abstract title as required. Finally, the document would be certified by the legal expert, stating that the information included in it is true and complete.

The client of the abstract title company can have the following checklist handy to find out whether all relevant information is included in the abstract title:

l Property deeds l outstanding mortgages l Homeowners’ Association dues l Liens l Encumbrances l Conveyances l Easements l Encroachments l Unpaid property taxes and tax sales l Restrictive covenants l Ownership based on Wills Hiring the services of an abstract company becomes a must in the following circumstances:

1. The property title contains complications such as the presence of liens, multiple owners, ongoing litigation, etc.

2. If there is a reason for potential legal disputes between claimants, neighbors, and others due to unresolved boundary issues, encroachment disputes, inheritors, etc.

3. When the concerned property boundary is not straightforward and contains complications like the inclusion of multiple parcels of land, restricted use of land, or easements

A first-time property buyer or seller is inexperienced with no knowledge about the legalities involved in a real estate transaction. Hiring an abstract company can enable them to focus on their core responsibilities while real estate-related tasks are handled by experienced professionals.

A majority of property buyers seek financing by taking a mortgage loan on the property. The lenders usually insist the investor use an abstract title company to oversee the transaction and provide the title insurance as a surety of a clear title.

An abstract title company remains involved throughout the process of real estate transactions. Their role ends with the closing or settlement services in Allentown and Lehigh Valley, PA, when the title of the property is handed to the new owner or purchaser.

[traditionalabstractpa]

Traditional Abstract, LLC, a leading abstract company in the area, provides trusted settlement services in Allentown and the Lehigh Valley, PA.

[traditionalabstractpa]

Need To Conduct a Real Estate Title Search in Bethlehem and Easton, PA

Investing in property is an oft-done task across the nation. While many US citizens may harbor the dream of owning their first home, others may want to resale the existing property. Sure, real estate transactions are complicated processes that must be done meticulously to ensure the legal rights of all concerned parties.  Conducting a thorough title search in Bethlehem and Easton, PA, is essential to ensure the property transaction closes perfectly. Trying to do it without the required knowledge and expertise will likely be ineffective. It makes sense to hire a legal professional or a title company to get it done flawlessly.

Sure, many people are confused about this aspect and question its need. It is interesting to note that a title search involves checking the public records for accurate information about the ownership of the said property. The records may include uncovering the facts by reviewing existing mortgages, deeds, judgments, tax liens, easements, and any other documents that may affect the property’s title. Moreover, the history of all transactions resulting in a change of ownership by inheritance, sale, or transfer can provide a clear line of the title.

While it is not necessary to do anything once a professional takes on the onus of doing a title search, the prospective buyer/seller may be interested in understanding the process as well.

Title Search Process

Knowing that the procedure is done by ensuring the following steps:

1. Placing a request to a title company or a real estate attorney

2. The professional will examine all relevant public records, including but not limited to the county courthouse records, tax assessor’s office records, and other official databases

3. The search may also involve reviewing surveys, maps, and other documents related to the property

4. Generation of a title report or abstract of title that summarizes the findings

5. The report is handed over to the seller/buyer for review

Reasons for conducting a title search

There are varied reasons for requesting a title search, and the following are deemed necessary:

· Necessary to protect the interests of both the buyer and the lender to ensure real estate transactions

· All potential problems with the property’s title are discovered early in the process

· The investor gets to avoid hugely expensive legal disputes by receiving a report of clear ownership of the property

· Lenders find the title searches to be important to assess the risk of financing the purchase

· The lenders may request the investor to buy title insurance as a prerequisite for getting the loan

The importance of title searches cannot be overestimated as they serve as a critical step in facilitating smooth, error-free,  and secure property transactions

The concerned title company may go a step further and handle all associated services on behalf of their client, thus ensuring proper settlement services in Allentown and Lehigh Valley, PA, followed by the successful closing of the transaction.

[traditionalabstractpa]

Traditional Abstract, LLC is a leading title search and examination company with over 20 years of experience in the industry. Our team of professionals is dedicated to providing accurate and efficient title services to our clients.

[traditionalabstractpa]

Advantage of 1031 Exchange in Allentown and Nazareth, PA

Real estate transactions are incredibly complex, with laypersons being out of depth when understanding various rules. It makes sense to consult with a real estate dealer or a tax consultant to know the details of a 1031 exchange in Allentown and Nazareth, PA. Sure, one may hear about this particular exchange when it comes to property transactions. It is natural to be curious about it, for such a term is not usually included in straight, straightforward purchase or sale of property. ​ A 1031 exchange or like-kind exchange is a swapping technique. It involves exchanging investment properties that are similar in all respects. Such an exchange reduces tax or no-tax liabilities, which benefits investors.

Some of the other essential points to be noted during such an exchange include the following:-

· It provides a tax break. One may swap an investment property for a similar one, thus deferring payment of capital gains tax applicable to the sale.

· The sum from the sale must be held in an escrow account of a neutral party. The proceeds from the sale will be utilized to buy the investment property.

· The properties qualified for such an exchange must be like-kind recognized by the IRS to ensure deferment of capital gain tax.

· There is no limitation on making such exchanges, provided the legal procedures are followed diligently. · The exchange may also apply to the principal residence held formerly by an investor. However, this can only be done when specific regulations are met.

There are multiple reasons for contemplating a 1031 exchange. The topmost reasons include the following:-

· It is a unique opportunity to build wealth for individuals, trusts, LLCs, S-corps, or C- C-corps. The money saved from deferred taxes may be put to use by making another investment and generating cash flow.

· One can benefit from tax implications that may range from 15% to 35%

· Conversion of low-income or no-income property by exchange with a higher income or value appreciation property

· Diversification and consolidation of the properties that the investor is holding

· Relocation of investment property by exchanging it with a like-kind property located in another geographical area that promises to be a lucrative market

· Falling out with a business or personal partner can be restrictive due to owning joint properties. The exchange allows the concerned partners to go separate ways without any financial losses

· Reinvestment in profitable properties by getting rid of properties that had been difficult to sell for diverse reasons

· Obtaining an investment property that may be converted into a primary residence or a second home in the future

· The deferred tax amount may be utilized for Build-to-Suit Exchange as well. This allows the investor to acquire land in exchange for the property and build a facility on it at a later date

It is essential to safeguard a newly bought property with a title policy in Lehigh Valley and Bethlehem, PA, that will help the owner retain the title regardless of defects discovered afterward. 

[traditionalabstractpa]

https://www.traditionalabstractllc.com/title-insurance-policy-owners-title-insurance-bethlehem-easton-allentown-nazareth-lehigh-valley/

Title Policy in Lehigh Valley and Bethlehem, PA

Looking to buy or refinance a home in the Lehigh Valley? Traditional Abstract has been providing title insurance and settlement services for over 30 years. We’ll ensure a smooth closing process for your residential or commercial transaction.

[traditionalabstractpa]

Gains of Opting For 1031 Exchange in Allentown and Lehigh Valley, PA

It is crucial to get in touch with seasoned real estate dealers occasionally. An individual hoping to profit by investing in real estate has multiple avenues to fulfill the goals. One may also consider the 1031 exchange in Allentown and Lehigh Valley, PA. Understanding the process and gauging the benefits while juggling the associated pros and cons is essential. It suffices to know that this is a unique procedure that allows one to swap the existing property in favor of a larger one, albeit after meeting the regulations. A real estate professional can help one navigate the complicated process by ensuring all regulatory requirements and meeting the specified timeline. 

Most investors steer clear of the procedure, but the ones that are eager to grab the opportunity do it for the following advantages:-

· Tax Savings-  The primary reason for deciding on a 1031 exchange is the opportunity to defer capital gain taxation. Payment of the original capital gains can be put off indefinitely by identifying another property as a replacement. This kind of exchange also helps one to defer the depreciation recapture tax. While one can safely avoid paying huge sums of taxes without any timeline, one may continue with the options for a lifetime, especially when the owner retains the replacement property. Conversely, the concerned property may also become available for another 1031 exchange, with taxation being deferred once again. ​ · Upgrading of Portfolio- The investor can utilize the 1031 exchange to upgrade the existing portfolio without investing more money. The equity created by redeployment of the capital gain is the additional investment. Thus, the investor has a substantial sum to go ahead with new investments. Going through the cycle multiple times enables the investor to create wealth by upsizing the properties continuously

· Estate Planning- The investor remains in control of the wealth by repeatedly taking advantage of the 1031 exchange. While non-payment of tax is profitable for the seller, the benefits become substantial after the investor's death. The concerned property steps up at the investor's death, allowing the inheritors to obtain the properties and wealth without any tax liabilities. 

· Second Home Investment- It is simple enough for a property owner to exchange an existing home for a more extensive property to serve as a second home. One may also transform it into a vacation home by making the related construction or remodeling. The said home can be rented out to earn a regular income. One may proceed with another 1031 exchange after a few months while maintaining all documentation about using the second home. Just advertising it as a property available for rent without actually doing so will not be appreciated by the IRS. One has to keep meticulous records of income from the tenants to ensure a flawless 1031 exchange

The top real estate agencies usually serve title companies inferring all property-related services, including escrow services in Bethlehem and Allentown, PA.

[traditionalabstractpa]

Escrow Service in Bethlehem and Allentown, PA

Worried about closing delays? Traditional Abstract in Allentown, PA offers experienced title search and escrow services for a stress-free real estate experience.

[traditionalabstractpa]

What are Settlement Services in Allentown and Bethlehem, PA?

Owning a property is a dream that every American harbors. The process is not as simple as buying a retail item. Instead, the long process commences once the prospective buyer selects the parcel of land, home, or any other landed asset by connecting with a realtor or lender. Conducting a title search in Lehigh Valley and Bethlehem, PA, to establish the property's ownership is necessary. The title must be clear and free to be transferred as well.

There is no hard and fast rule about hiring an individual or a company to do what is needed. While one can go about it singlehandedly, it is advisable to do it by an experienced professional or a title company. This ensures zero mistakes and proves that the title is free to be transferred in exchange for money. The transaction may also take place without the search, but this may throw up multiple risks that will be hard to dispel in the future.

A layperson who desires to buy a home does not have the necessary knowledge or skills. While the new properties are sure to be listed in public records, the old ones may require going through documents as the property had been bought or sold well before the records were computerized. The importance of a thorough and meticulous title search is done for the following reasons:-

· Ensure Absence of Liens/Encumbrances- This is one of the primary reasons to conduct a title search. It suffices to know that a lien is a legal claim filed by a third party that may be a contractor, creditor, or any other party having an interest in the property. The existence of a lien prevents the ownership from changing hands. What's more, a substantial debt by the owner against the property may result in foreclosure, too. The existence of an encumbrance may not prevent the buyer from taking possession but may limit the use of the property. Finding out more about such hindrances can help the buyer make an informed decision

· Title Defects/Disputes- Disputes may arise when there are multiple claimants or the same property. Such disputes often end up as a legal battle that the court takes up. A defect in the title may exist due to a clerical error in the deed or forgery. Early identification of such problems enables the buyer to rectify the tile as needed. The title is free to be transferred once it is clear

· Protection of Investment- Purchasing property is a big step that involves a substantial financial commitment. One is eager to protect the investment, therefore. Sure, there have been many instances of buying property without a title search. These may result in significant financial loss when additional legal claims are made on the same property. It is thus essential to check and be ensured of the ownership before going through the expense

Connecting with a title company can help the property buyer close the deal satisfactorily by ensuring settlement services in Allentown and Bethlehem, PA.

[traditionalabstractpa]

Looking to buy in the Lehigh Valley? Traditional Abstract offers comprehensive real estate services in Allentown, Bethlehem, Easton, and beyond. We handle title searches, escrow, and insurance to protect buyers and lenders throughout your transaction. Contact us for a smooth and secure experience!

[traditionalabstractpa]

Traditional Abstract is an experienced title insurance company in Allentown, PA, offering title searches, escrow services, and other real estate title services for over 30 years.

[traditionalabstractpa]

Need For a Property Title Search in Bethlehem and Easton, PA

Being the owner of a tangible asset such as a home or office can result in profitability in the future. The ROI tends to increase when the property is maintained perfectly as well. It is vital to authenticate the ownership of the home that is being listed for sale. Investing in it can become legal only after the ownership is transferred and accepted by the authorities. This necessitates a title search in Bethlehem and Easton, PA.

The term may be a trifle confusing for many people. One is satisfied to learn that title refers to the possession of the said property and is free to use it as deemed fit. However, the title may be held in diverse ways. It might be held jointly by a group or family members. Some titles also include the right of survivorship. This is important for titles held jointly. A survivor may claim ownership after the death of a joint owner. A third aspect that one needs to be aware of is the possibility of the mortgage firm or a government organization's claim. Dismissing such claims is only possible via a title search.

 It is interesting to know that titles are not always clearly defined and may throw various issues for the intended buyer. Finding the title by searching the records is a long exercise that requires skills and attention to detail. While the prospective buyer or the existing seller may go about the process singlehandedly, hiring a title company may be the best way to claim ownership. Some of the common reasons to request a professional title search are:-

· Verification- Ensuring the ownership is the most crucial reason to have a title search done. While it may be easy to find the records of a new property, trying to find old records of ownership before computerization can be difficult but not impossible.

· Clear Title- An ownership that has been established accurately is known as a clear title. Unfortunately, most titles reveal issues that may consist of existing liens, multiple claimants, encumbrances, etc. The prospective investor must insist on resolving such problems well before the transaction process. This ensures a clear title and no legal problems remaining behind.

· Debts- Unpaid taxes and/or pending debts can result in legal complications for the new owner. An effort must be made to solve such issues so that the title is not embroiled in financial problems that may allow claiming the property. All mortgages, taxes, and other debts associated with the property must be paid in full to ensure a clear title that is fit to be sold

· Easement & Restrictions- The buyer may be able to make an informed decision about going ahead with the investments once the easements & restrictions for the use of the property come to light via the title search.

The title company provides a range of real estate services known collectively as settlement services in Bethlehem and Allentown, PA. It includes title search, escrow services, and providing the required title insurance.

[traditionalabstractpa]

Need For Checking The Real Estate Title in Bethlehem and Lehigh Valley, PA

Trying to defer capital gains tax is not an offense. On the contrary, many American citizens prefer to consider it to buy time to pay applicable taxes. The best way to go about it would be to consider a 1031 exchange in Allentown and Nazareth, PA, and do a property swap that can be hugely beneficial in the long run. ​ The term does seem to be a rifle confusing to the users. It is essential to trace its history and learn that the procedure refers to Section 1031, included in the Internal Revenue Code (IRC). This provision is usually considered by real estate agents, investors, and title companies. Simply being aware of the term is not sufficient. The user must be well informed about its implications as well. One of the vital points that must be kept in mind is that such an exchange is only allowed when both properties are similar. The IRS has different standards for individuals hoping to do a 1031 exchange of their vacation homes.

Some of the most essential information related to the 1031 exchange includes the following;-

· This is a specific type of tax break that a property owner may consider. An existing property that is used for running a business or for the sole purpose of investment may be sold, and a new property purchased with the same intention. Such a move will help the investor to save a huge sum on capital gains tax.

· All the money from the sale must be held by a third party or an escrow. The amount saved in an escrow account will be used for purchasing the new property. The investor cannot use the money for any other purpose, even temporarily.

· The capital gains can be successfully deferred only when the IRS considers both properties to be like-kind.

· There is no limit to using this provision. A 1031 exchange may be done multiple times.

· One may also use an older residence for this purpose. The IRS would have to be informed about it, with permission being sought for such consideration.

Reasons to consider a 1031 exchange

Admittedly, this type of swap is not for everyone. Again, many individuals find it advantageous for various reasons, including deferring the tax. Some of the investors who are not opposed to considering a swap of like-kind properties do it for the following reasons:

· Diversification of assets- The investor can diversify the assets into different markets, thus reducing the extent of risks.

· Consolidation- A property owner may use this provision to consolidate several similar properties, thus saving on maintenance costs.

· Estate Planning- A property owner can continue to use the exchange for a lifetime, thus postponing the capital gains taxation indefinitely. The heir who inherits the estate, benefits from the stepped-up value, which is considered to be a fair inheritance.

Buying and selling of property can be complicated. It is advisable to conduct a search for real estate titles in Bethlehem and Lehigh Valley, PA, and be convinced of the existing ownership before going ahead with the investment.

[traditionalabstractpa]

https://www.traditionalabstractllc.com/real-estate-title-easton-lehigh-valley-nazareth-allentown-bethlehem-pa/

Traditional Abstract, LLC is your trusted partner for all your title and real estate needs in Allentown, Bethlehem, Easton, Lehigh Valley, Nazareth, PA, and surrounding areas. Our dedicated team of professionals is committed to providing reliable title insurance.

[traditionalabstractpa]

Details of a 1031 Exchange In Allentown and Lehigh Valley, PA

Trying to deal with real estate complications often goes beyond buying and selling property. It is always advisable to consult a realtor or a property expert well-versed in US laws. It is not surprising to hear the term 1031 exchange in Allentown and Lehigh Valley, PA, several times when the expert tries to find a cost-effective way for the client to invest in property. It suffices to know that the 1031 exchange refers to swapping an investment property for another. The term is derived from Section 1031 of the Internal Revenue Code (IRC). All sorts of individuals actively engaged in the process, such as real estate agents, title companies, brokers, and investors, use this term to refer to an exchange of investment properties. ​ Going through the entire Section 103ofthe IRC is not going to be helpful. The section is vast, with multiple parts, and the user must know where to look before using this part diligently. It is essential to understand that all types of properties cannot be exchanged. The regulations indicate only similar properties that may be exchanged by following the 1031 process.

Some of the basics that an interested person must know include the following points:

· A 1031 exchange is considered an excellent way to obtain tax breaks. One can sell off an investment property by exchanging it for a similar property for an identical purpose. This will allow the property owner to defer paying capital gains tax on the sale.

· The sum obtained from the sale is required to be put into an escrow account of a third or neutral party. The money will be utilized for purchasing an identical property. The buyer will not be able to withdraw any part of the sum, even temporarily.

· While the prospect of deferred capital gains tax is pleasing, it is vital for the properties that are meant for exchange to be like-kind. The IRS decides this.

· Investors with experience in this process may do it frequently if the regulations are maintained.

· The same rules may apply to a primary residence that is being exchanged. The finer points of the title document must be checked carefully before undertaking the procedure

Both new and experienced investors reap advantages from such an exchange that provide the following for the concerned parties:-

· Leverage- One can decide to buy a better-valued investment property by making a sizable down payment on the like-kind property.

· Diversification/Consolidation- The investor may exchange a single property for multiple ones and consolidate them into a single property, thus complying with the rules. It can be done for properties located in different states, too.

· More Cash Flow- Both the overall income as well as the flow of cash may be enhanced by opting for a 1031 exchange.

When trying to invest in property, it is most important to use the services of a reputed abstract title company in Easton and Bethlehem, PA. 

[traditionalabstractpa]

Traditional Abstract, LLC is a dedicated team of professionals that provides comprehensive title insurance, property title search, escrow service, and real estate title in Allentown, Bethlehem, Easton, Lehigh Valley, Nazareth, PA, and surrounding areas.

[traditionalabstractpa]

Need To Buy Title Policy In Bethlehem and Lehigh Valley, Pa

Investing in property is considered to be a huge step. Indeed, ordinary citizens may purchase only one land or property during their lifetime. It is a relatively complex process involving a lot of time and money. The lending organization may impose some terms & conditions in addition. Ownership can be claimed only when the property title changes hands, with the new owner's name being added to the title document. Such a process can be handled by an attorney or a title company that takes on the onus on behalf of their client. Buying an insurance plan known as a title policy in Bethlehem and Lehigh Valley, PA, is necessary to ensure one's ownership too. The new owner cannot grudge this need and decide to avoid buying the insurance. It is essential to know that the buyer, along with the lender, will be protected from financial losses resulting from title defects. While it is necessary to investigate the existing title thoroughly well in advance of buying the property, there may be multiple defects that go unnoticed. Title insurance can help one to mitigate such risks. ​ The new owner may seem pleased that the cost of the property has been paid in full courtesy of the bank or any other lender. Unfortunately, there may be violations noted in the title after it changes hands. The most devastating scenario is the presence of a legal heir who had been in the dark when the property was sold. It is scary to think about the outcome in such circumstances. Having title insurance can reduce the burden considerably. Title Insurance Types There are two distinct types of title insurance policies that one can purchase. Both policies benefit diverse participants after the real estate transaction related to a property is completed. It is essential to differentiate between the two before buying them. Lender's Insurance Policy The lender, a bank or an NBFC entity, almost always requires the borrower to provide them with an insurance policy when requesting a home loan. The title company will issue the policy to protect the finances of the lender in the event of a defect cropping up in the title at a later date. This policy only covers the lender, with the borrower unable to claim coverage. The buyer cannot avoid spending money on this policy, though. It is a requirement that needs to be honored. Owner's Title Insurance Policy This optional insurance policy offers the same coverage as the lender's policy and is meant for the property owner. An individual is not compelled to buy it, but it is advisable to obtain protection for the title that can be at risk for the following reasons: · Ownership disputes · Outstanding liens, lawsuits, or encumbrances · Errors in the public records · Forgery · Undisclosed easements Property transaction is a complex matter that requires validation of ownership. The first step to purchasing a home is to conduct a thorough title deed search in Easton and Nazareth, PA. This can be undertaken by hiring a title company or a legal professional. Individuals can do it single-handedly as well.