Benchmark Title Company, LLC

Welcome to the Benchmark Title Company's Title Tip of the Week Newsletter. This week we discuss issues related to commercial real estate transactions.  

Commercial Real Estate Transactions
by Doreen Miller, Esq.
Commercial Real Estate Transactions are more complex than residential closings.  Legal and lender representatives often have a multitude of issues to review before closing.  A few common areas of concern are listed below:

  • Entities such as corporations, limited liability companies, partnerships and limited partnerships are usually named as the buyer or seller in a transaction.  The title company will require organizational documents and proof of good standing.  Good Standing Certificates may be obtained by contacting the Secretary of State of the applicable state.  Title companies usually require that a corporation, limited liability company or limited partnership be authorized to do business in the State of Illinois.   A resolution will also be required to be signed by an authorized party of the entity.  Non-profit organizations may have to provide by-laws and minutes of the meeting in which the transaction was voted upon and approved.

  • Title concerns will be of paramount importance.  A buyer's representative may work with the title company to revise the commitment to remove title exceptions.  Affidavits, surveys and additional investigations may be required.  If "extended coverage" or the deletion of the standard exceptions is required on the final policy, the title company will require a current ALTA (American Land Title Association) survey certified to the Underwriter and the Title Company showing all improvements, rights of way, easements and encroachments (if any) and an ALTA statement will need to be executed at closing.  The buyer or lender may require additional specialized endorsements.  The title company should be advised as soon as the buyer's attorney or lender's attorney is informed of the list of endorsements.  The title company will advise these representatives of the clearance documents required to obtain these endorsements.

  • One of the parties to a commercial transaction may be involved in a 1031 tax-deferred exchange.  This is a transaction under federal law that permits a party to defer paying capital gains tax when a party relinquishes property and replaces it with other property(s).  To qualify, parties have to follow very specific rules.  We facilitate these transactions however we do recommend that any party contemplating a 1031 exchange confer with their accountant and/or attorney beforehand to be sure they will gain the maximum benefit.  A more comprehensive discussion of 1031 exchanges will be made in a future title tip.

  • Most commercial transactions are "people-less".  In other words, many of these transactions are completed through overnight deliveries and wires.  All parties should provide complete contact information and written wire instructions to the title company to facilitate communication.  If parties will not attend a closing, the title company should be informed as soon as possible.  In addition, the name of the purchaser should be considered well before closing.  Changing a purchaser name at the last minute may delay closing. New clearance items must be produced for the new purchaser.  In addition, a commercial lender may have to redraft their documents to accommodate the change in name. 

Any questions can be directed to Benchmark Title at 618-239-3750. Please feel free to call or email:

 

John Howe
President

Doreen Miller, Esq.
Commercial Division Manager

 

Sarah Holdener, Esq.
General Counsel,
VP Production

Michelle Null
VP Escrow Operations


Serving you from three convenient locations:

Main Office:
1124 Hartman Lane
Shiloh, IL 62221
Ph: 618-239-3750
Escrow Fax: 618-239-3707
Title Fax: 618-239-3757
Fax Orders: 618-310-1589
President:
John Howe
www.benchmarktitle.net

318 North Main St.
Columbia, IL 62236
Ph: 618-281-9700
Fax: 618-281-9705

Manager: Randi Schur

4215 S. State Rte 159
Glen Carbon, IL 62034
Ph: 618-288-1695
Fax: 618-288-1852
Manager: Sara Sowell

Did you say free?

Be the first in your office to try out SureClose.com, Benchmark Title's new FREE online transaction management system. Why waste time making status phone calls or standing by the fax waiting for your title commitment when you can get what you need instantly from your own computer. Visit SureClose.com for more information or call April Tolan, our SureClose Specialist, at 618-239-3750 for your sign-on so you can start saving yourself time and money today. We'll even give you and your clients a free CD at closing containing copies of their closing documents.

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Did you know that lenders and home buyers now receive their title policies at the closing table? Call Michelle Null, VP Escrow Operations, to learn more about this exciting new program.

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Benchmark Title Company, LLC
1124 Hartman Lane
Shiloh, IL 62221

Our telephone:
618-239-3750

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