Legislative Revision Makes It Easier to Buy and Sell Homes with Ground Rent

The concept of ground rent in Baltimore and surrounding counties may be traced back to colonial times, when investors bought tracts of land from the newly sovereign colonial governments and allowed tenants who otherwise could not purchase land for themselves to make small, incremental rent payments as a less-expensive alternative to land ownership. Continue reading “Legislative Revision Makes It Easier to Buy and Sell Homes with Ground Rent”

5 Tips to Winning Repeat Clients and Referrals

No matter how amazing you are at your job, sometimes the most difficult part is finding new business. 

Whether you’re a real estate agent or a lender, you’re going to have plenty of competition out there. Buyers and sellers have options, and it’s an uphill battle to get their attention. Continue reading “5 Tips to Winning Repeat Clients and Referrals”

Common Title Liens That Could Sneak Up On You

If you want to close the sale, you must have a clean title.

It’s not as easy as it might seem.

A clean title means there are no standing claims against the property and that the owner has the full legal right to sell the property. Our job as your title company is to do the digging to ensure that the title is clean and ready for a smooth transfer of ownership.

But often, it’s not smooth at all. Continue reading “Common Title Liens That Could Sneak Up On You”

Applying for a Withholding Tax Exemption? Here’s What You Need to Know

The Maryland “Non-Resident” Real Estate Withholding Tax is 8% for Individuals (8.25% for LLCs, Estates and Entities) on the PROCEEDS or GAINS from the sale of a property. 

A Full Exemption is possible if a seller can certify any of the special situations listed below. Continue reading “Applying for a Withholding Tax Exemption? Here’s What You Need to Know”

Yes, You Can Sell a Home Owned by a Corporation

If you are selling commercial property, it is likely that you have sold properties held in a corporation. Advantage Title has a strong commercial side and is capable of handling your commercial deals as well.

However, it is still possible to have a residential property be held in a corporation. So what do we need to know when the owner of record is a corporation?

Let us help.

The first thing we will need is a copy of the Articles of Organization, a copy of the Bylaws, the EIN # for the corporation, and a Certification of Resolution. The Certification of Resolution will tell us who has the Signing Authorization for this property. Once we have these documents, we will verify that the cooperation is in good standing with the state.

For the contract of sale, the seller will be the name of the corporation. The seller will sign as “*Name, Officer, Name of Corporation.*” For example, “Jessica Scott, President, ABC Company.”

At settlement, we will disburse funds into a separate bank account for the corporation.

That’s it! The rest of the transaction will proceed as normal. As always, feel free to call or text Business Development Manager Jessica Scott at (443) 487-1584 to guide you through the process.

Here’s What You’ll Need to Sell a Property Owned By an LLC

What do you do when you have a listing coming to the market but the owner is in an LLC? Does anything change? How does the sale work?

We can help. 

When a property is in an LLC, it means that the business is holding the title to the property. While the sale isn’t too different from a traditional owner sale, there are quite a few documents we will request in the transaction. So it is prudent to make sure you let your seller know ahead of time what documents to collect for clearing title. Continue reading “Here’s What You’ll Need to Sell a Property Owned By an LLC”

What to Do When the Owner of Record is in a Trust

Have you ever sold a home where the owner of record is in a trust? What does that mean? How is that different? What does title do differently, and how do you know when a property is in a trust?

A trust refers to the fiduciary relationship created to appoint one party to manage assets on behalf of a third party. This relationship is established between the creator of the trust (the grantor) and the trustee, who holds and administers the property within the trust on behalf of the beneficiary designated to receive the property. The trustee is appointed to administer the trust while acting in the best interests of the grantor.

So how does this transaction differ from a traditional sale? 

Well, the short answer is … it isn’t that different. There are a few things we (the title company) will need in order to begin the sale. We will need a copy of the Trust Agreement from the Seller. This will include names, permissions, and who is the signing agent of the trust.

The sale contract will have the seller’s name as the name of the Trust and the representative of the trust will sign as Trustee. For example: “Trustees name”, Trustee.

For settlement, we will need to verify the separate bank account that is open in the name of the trust.

Whenever a listing comes up that has the owner of record in a trust, the best thing to do is to call Advantage Title immediately. Our Director of Business Development, Jessica Scott, will walk you through the process and ensure that your transaction is handled smoothly and efficiently.

Title Tips for Selling a Home in an Estate

What do you do when your next listing is in an estate? And what does that mean for title?

While selling a property held in an estate is slightly different from your traditional sale, it doesn’t have to be difficult! The best way to sell this kind of property is to be prepared.

When an owner of a home passes away, typically, that home goes into the individual’s estate. The first thing we do is verify the Personal Representative of the Estate by using the Maryland Registers website. Continue reading “Title Tips for Selling a Home in an Estate”

Homestead Tax Credit

Happy One-Year Anniversary!

Now that you’ve lived in your house for a year, you should qualify for Maryland’s Homestead Tax Credit. This credit limits any annual tax increase to no more than 10% a year for a principle residence. As values rise, so will your taxable assessment. So lock in your base value now before you overpay on your future tax bills. To register, you must:

1) Live in the Property for a Year as Principle Residents

2) Receive Your Application by Mail or Call 410-767-2165 to Get the Access Number

3) Apply at https://sdathtc.dat.maryland.gov/