There are a variety of taxes and fees that you may be responsible for when you purchase commercial real estate. The particular taxes you’re required to pay and the amount of those taxes can also vary based on several factors. In this article, we are going to discuss the various recording and closing fees that you may encounter in a commercial title insurance transaction.
3 Important Taxes
The commercial real estate taxes and fees you need to pay in your transaction vary depending on the state in which the transaction occurs. There are three primary taxes and fees that may exist in a commercial real estate transaction:
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Deed Tax
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Transfer Tax
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Mortgage Recording Tax
Whether or not you have to pay these taxes depends heavily on the state in which the transaction is taking place. Some states require all three. Others will only charge one. It’s important to have a commercial title company who understands the taxes and regulations in your particular state to avoid any potential complications. These fees can really add up, so be sure to ask your title company whether you’re responsible for these fees so you can get a good gauge on the cost of your transaction.
Contact a Commercial Title Insurance Expert
If you are purchasing a new commercial real estate property, it’s important to get an owner’s title insurance policy. Title insurance helps protect you and your investment in case someone brings a claim on your property in the future. Contact the title insurance experts at Commercial Partners Title today for help with your commercial transaction. Our team has decades of experience helping investors large and small with their commercial real estate transactions. We are recognized as experts in commercial transactions in Minnesota and across the country. Give us a call or visit us at our downtown Minneapolis office today to discuss your situation.