A tax deferred exchange is simply a method by which a property owner trades one property for another without having to pay any Federal income taxes on the transaction.  In an ordinary sale transaction, the property owner is taxed on any gain realized by the sale of the property.  But in an exchange,  the tax on the transaction is deferred until some time in the future, usually when the newly acquired property is sold.  These exchanges are sometimes called "tax free echanges" because the exchange transaction its self is not taxed.

    Tax deferred exchanges are authorized by Section 1031 of the Internal Revenue Code.  The requirements of Section 1031 and other sections must be carefully met, but when an exchange is done properly, the tax on the transaction may be deffered.

    In an exchange, a property owner simply disposes of one property and acquires another property.  The transaction must be structured in such a way that it is in fact an exchange of one property for another, rather than the sale of one property and the purchase of another.

    Today, a sale and a reinvestment in a replacement property are converted into and exchange by means of an exchange agreement and the services of a qualified intermediary, or fourth (4th) party, who helps to ensure that the exchange is structured properly.

    The IRS's regulations make exchanging easy, inexpensive and safe. when done properly that is.  While that concept is simple, the actual transactions can be very complicated and require the expertise of knowledgeable personnel.  Northern Title has years of experience with these exchanges and you can be assured that when we are involved, it WILL be done correctly!

In July of 2000, a new law became effective that completely changed the way water rights are transferred in the state of Utah.

    In the past, when ever a deed was recorded on a piece of property that involved the transfer of water rights, the buyer could deliver the necessary documents to the Division of Water Rights, also known as the DWR. The DWR would then search the records and take the appropriate actions.

    As of July, the law shifted the responsibility of the researching the water rights documents from the DWR to title companies, engineers, or lawyers.  One of these three must now research the records, complete, and submit a "Report of Water Rights Conveyance" to the DWR.  This report is then used by the DWR to amend state records to show a change of a water user.

    Since July, Northern  Title has moved quickly to establish procedures that will enable us to meet all your needs for transferring water rights.  We can offer you the same high quality of service with water rights issues that you have come to expect on your other title matters.

What is an Escrow?  In simplest terms, it is and arrangement in which a completely neutral third (3rd) party, sometimes called and "Escrow Closing Agent", holds the legal documents and funds on behalf of a buyer and seller.  The Escrow Closing Agent distributes them according to the written instructions of the buyer, seller, and the lender in the event of a new loan.

    Northern Title Company is one of the oldest, and most experienced Escrow Closing companies in our service area.  Our Escrow officers, the men and women who actually handle to transactions, have helped thousands of people with their real estate transactions.  Here's a closer look at what Northern Title Company actually does as your Escrow Closing Agent:

1.  Obtains signatures of both the buyer and the seller on all documents necessary to complete the transaction.

2.  Briefly explains the function of all documents to be signed.

3.  Collects and clears all necessary funds.

4.  Only distributes funds when in a position to deliver title to the buyer and to guarantee funds to the seller.

    After closing, we will keep copies of all your documents should you ever need them for taxes of any other reason.  We WILL NEVER disclose ANY of your information in our closing file without your consent.  

Sellers of real estate, generally private individuals, will sometimes finance the property they sell.  The loan is usually secured by the property  and the buyers will sign a note in favor of the seller.

    Northern Title Company services these transactions by preparing the necessary closing documents, including a trust deed and a note.  Once the transaction is closed, we service the transaction over the life of the agreement.  We receive payments, disburse funds, submit required forms for year-end reporting and hold all necessary documents in escrow until all the terms of the agreement are met.

    Northern Title has years of experience servicing these types of escrows and is prepared to help in anyway possible!

Why and what is it? 

    Title Insurance offers you information on the status of the title to land before you buy and protection against claims that may affect the title after you buy.  Here's how it works:

    Before your real estate transaction closes, the public records are searched to find all related official documents.  These documents are then examined for their effect, and form the basis of the title insurance policy.  The examination reveals the current status of ownership and encumbrances.  It shows the current recorded owner.  It also shows the current limitations on that owner's property rights, such as outstanding mortgages and utility easements. etc...

    If the status of title is cleared before you buy, why do you need title insurance?  Because even after the most careful research, some title flaws, forgery, fraud, or confusion due to similar names may go undetected.  These problems may surface at any time in the future.  Title insurance provides protection for as long as you own the property, and without any additional fee.