There are many factors to consider when writing title insurance across different states – as many states have differing rules, regulations, and levels of taxation. In this article, we are going to discuss some important title closing costs and recording fees to be aware of during your commercial transaction.
Taxes Across State Lines
There are three primary recording fees and closing costs that you need to remember when writing title across state lines:
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Mortgage Recording Tax
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Deed Tax
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Transfer Tax
These three fees can be vastly different depending on the state. Some states require all three to be paid, while other states may only require a deed tax. This can lead to confusion and frustration if the buyer is hit with an unexpectedly high bill during the closing process.
Regardless of the state your writing in, it’s important to be aware of these differences and ask questions of your title company so you know what to expect at the closing table. If you have any questions about the fees associated with your commercial transaction, don’t hesitate to ask your title company. They will be able to explain all the fees that need to be paid prior to closing so there are no surprises.
Get Help with Your Commercial Transaction
Commercial real estate transactions can be complex. At Commercial Partners Title, we simplify the process for you. Our commercial underwriters, closers, and attorneys have decades of experience working on commercial transactions in Minnesota and across the United States. We can help ensure your commercial transaction is a success and that your interest in the property is protected. Reach out to our commercial title experts today at our downtown Minneapolis office to chat about your commercial transaction and see how we can help!