Commercial Escrows/Settlement

A commercial escrow is one that involves the transfer or encumbrance of property other than residential, such as office, research, retail and industrial properties.

Paxin Closing and Escrow, LLC recognizes that there is no such thing as an easy commercial transaction. Each transaction is unique and the main role of the settlement agent becomes that of a coordinator and problem solver. Often a transaction will become so complex that the settlement agent is the only person who has a grasp of the entire transaction and all closing requirements. Handling commercial escrows requires unique skills on the part of the settlement agent.

If you have any questions, or need help with your title insurance needs, please do not hesitate to contact Paxin Closing and Escrow, LLC, at  866-752-4445.

NEW COMMUNITIES ESCROW

 

Paxin Closing and Escrow, LLC maintains escrow and title divisions, in the State of Georgia, that specialize in serving the needs of our developers, builders and lenders of new communities. We provide high quality title services and escrow coordination for high volumes of transactions that exceed the inherent needs of the real estate professionals involved in the development of real estate. We have built a reputation for efficiency in smoothly processing land acquisitions, demolition, new construction and sale-out transactions. Whether you're considering an industrial park subdivision, or accumulating parcels for a master planned community, Paxin Closing and Escrow, LLC can assist you with every phase of development.
We know that builder developers require speed, accuracy and confidentiality in the fulfillment of their title needs. That's why so many builders and developers choose Paxin Closing and Escrow, LLC.
We have a history of applying leadership and creative concepts in title coverage of land acquisition and developments. We have been the innovators of many revolutionary real estate concepts, including insuring air rights over property, title insurance for condominiums, interim-construction disbursements, inflation rider and closing services.
As a result, we enjoy the closest possible relationship with the real estate, mortgage lending and building industries as well as the legal profession. We have adopted many of the methods and techniques that are standard in title insurance today.
Our personal service is more than just title and real estate specialists backed by our sizable resources. Our local representatives are true professionals, experienced real estate title experts with detailed knowledge of real estate as well as an intimate understanding of the local markets and customs in their communities.

If you have any questions, or need help with your title insurance needs, please do not hesitate to contact Paxin Closing and Escrow, LLC, at  866-752-4445.

LIFE OF AN ESCROW

It all begins after the principals (buyer and seller) have signed the purchase and sale agreement.   
A good faith deposit is generally placed with the escrow agent, simultaneously with approval and execution of the escrow instructions.    
An owner’s title insurance commitment is issued in favor of the purchaser.    In addition to issuing an owner’s title commitment, oftentimes, a title insurance commitment is issued in favor of a lender.    Both title commitments will have requirements that will have to be complied with, before closing.   When a lender is involved, the escrow agent is performing under two separate sets of instructions.    After loan approval and after all inspection periods have passed, a closing date is set, pursuant to the terms of the contract.    Paxin Closing and Escrow, LLC acts as an impartial  “stakeholder” or depository, for all documents and monies required to complete the transaction pursuant to written instructions from the principals.     Among other things, closing the transaction consists of document preparation, preparing the closing statement/s, funding monies to a payoff lender (when applicable), paying off all other existing encumbrances and obligations and disbursing seller proceeds.    Paxin Closing and Escrow, LLC then reviews and approves the signed documents, releases and the order for title insurance.     Paxin Closing and Escrow, LLC then records the signed documents with the County Recorder’s office and prepares to issue the title insurance policies.

If you have any questions, or need help with your title insurance needs, please do not hesitate to contact Paxin Closing and Escrow, LLC, at  866-752-4445.

LENDER ESCROWS

As a Commercial and Industrial real estate lender, protection of the collateral for your loans is of utmost importance to you, especially when you are making multi-million dollar loans on commercial shopping centers, and the like.   Paxin Closing and Escrow, LLC, has a variety of products, each designed to respond to a specific need.   More than 20 years of experience coupled with the highest degree of integrity in the industry assure you of the greatest level of protection available.    Regardless of size, the experienced, dedicated members of our staff will give every transaction the attention it deserves.

If you have any questions, or need help with your title insurance needs, please do not hesitate to contact Paxin Closing and Escrow, LLC, at  866-752-4445.

SPECIAL ESCROWS

When the word "escrow" is mentioned, most people think in terms of a real estate transaction. In fact, there are several other types of transactions for which Paxin Closing and Escrow, LLC is able to provide escrow services. Transactions involving a bulk sale or aggregate tax escrows are some of these.   Paxin Closing and Escrow, LLC is a closing/escrow/title insurance company.   We pride ourselves in the fact that we are a full service company with the ability to provide services in many related areas. A bulk sale generally involves the sale of a business and, if properly handled, serves to protect the creditors of the seller of the business and the purchaser of the business. The statutes governing bulk sales require a notice to be recorded and published which gives the creditors of the seller an opportunity to file claims with the escrow holder for amounts due them for providing goods and/or services to the business. This process also protects the purchaser from the creditors of the seller. Only very competent, experienced escrow officers handle these transactions.

Aggregate tax escrows are generally needed when a management company, managing numerous accounts for a single owner entity, wants to make sure all taxes are paid on time.    Normally, when the management company notifies the owner entity, that tax is due, much time is wasted organizing the entity’s accounting department, for timely payments.    Thus, resulting in late postings and penalties.   In escrow, the management company informs the owner entity, in advance, the aggregate tax amount due.    The owner entity then deposits the aggregate tax amount with the escrow company.   In turn, the escrow company releases the escrowed monies to the management company, which controls and sends out, timely payments.

If you have any questions, or need help with your title insurance needs, please do not hesitate to contact Paxin Closing and Escrow, LLC, at  866-752-4445.

ESCROW SETTLEMENT INFORMATION

Paxin Closing and Escrow, LLC, offers you experienced Escrow Settlement agents who are well trained in Commercial and/or Industrial real estate closing procedures and the issuance of title insurance commitments and policies. We act as an objective third party who follows the instructions of the parties involved. Our wealth of technical experience and knowledge of how to keep track of all the transaction details is your assurance of a smooth closing.   Paxin Closing and Escrow, LLC’ Escrow Settlement agents get the job done with efficiency and accuracy.

For more specific answers to your escrow settlement questions, follow this blog, for up and coming information on the following escrow related topics:

·               Special Escrows
·               Lender Escrows
·               Life of an Escrow
·               New Communities Escrows
·               Commercial Escrows
·               What happens in Escrow Settlement?
·               Who may handle Escrow Settlements?
·               Instructions to the Settlement Agent
·               What each party does in Escrow
·               Closing the sale and division charges

If you have any questions, or need help with your title insurance needs, please do not hesitate to contact Paxin Closing and Escrow, LLC, at  866-752-4445.

WHY HIRE A COMMERCIAL REAL ESTATE ATTORNEY?

In our practice, we help clients with all types of Commercial, Industrial, Agricultural real estate matters.  While some consider only consulting with a general practice lawyer, when problems occur, an experienced Commercial Real Estate Lawyer will work with his or her clients to prevent problems from occurring. Commercial real estate lawyers provide a valuable service to anyone buying or selling commercial real estate. In fact, it is even more important to protect yourself in the current recession.

When selling and/or purchasing commercial, industrial or agricultural property it is a good idea to work with both a commercial real estate broker and a commercial real estate lawyer. Real estate brokers help clients find properties and will negotiate the terms of the purchase agreement. A good commercial property broker has a wealth of knowledge about the market and will network with other brokers to gather information that will ultimately benefit the client. Real estate brokers also have contacts in related fields, such as mortgage brokers, and property inspectors.

We can help commercial property investors because we are qualified to dispense legal advice and will protect the client from costly mistakes. As experts in real estate law, we know how to draft effective Georgia real estate legal documents.  Our experience offers a wide variety of real estate issues, such as construction defects, land use and zoning and contract disputes.

Our firm welcomes the opportunity to represent you. We are able to take on real estate transactions at a state and national level.  We are here to help you.

If you have any questions, or need help with your title insurance needs, please do not hesitate to contact Paxin Closing and Escrow, LLC, at  866-752-4445.

RECORDING REQUIREMENTS – INSURING PROPER ATTESTATION OF DOCUMENTS

Defects in the witnessing and attestation of signatures to recorded instruments continue to cause problems for title insurance underwriters. Last month the Georgia Supreme Court issued its decision in the case of U.S. Bank National Association v. Gordon, interpreting O.C.G.A 44-14-33 as it applies to the effect of a recorded security deed which fails to meet the statutory requirements for recording. In U.S. Bank National Association v. Gordon, the security deed executed by the borrower was recorded without the attestation of either a witness or notary. When the borrower filed a Chapter 7 bankruptcy petition, Neil Gordon, the Chapter 7 Trustee, sought to set aside the security deed, arguing that it was not entitled to constructive notice due to the defective attestation. 

U.S. Bank’s argument was that this position was incorrect based on the language of O.C.G.A. 44-14-33: “In the absence of fraud, if a mortgage is duly filed, recorded, and indexed on the appropriate county land records, such recordation shall be deemed constructive notice to subsequent bona fide purchasers.” The Court held that, while the position advocated by U.S. Bank would apply to deeds where the defective attestation was a latent defect, such as the case of an attesting witness who did not actually witness the grantor’s signature, it would not apply to cases where the defective attestation was obvious on the face of the deed. The Court focused on the requirement that the deed be “duly” recorded, concluding that to meet this requirement, a deed on its face would have to meet all statutory recording requirements. The net effect of this case is to render the lender an unsecured creditor in the administration of the bankruptcy estate. By now the title insurance underwriter who insured the security deed has no doubt received the lender’s claim notice.

If you have any questions, or need help with your title insurance needs, please do not hesitate to contact Paxin Closing and Escrow, LLC, at  866-752-4445.

SETTLEMENT PRACTICES AND GOOD FUNDS

Recently the real estate industry has experienced an epidemic of lenders who are unable to fund loans.    We have seen dozens of instances in which settlement agents have disbursed funds in reliance upon a lender’s check or wire, only to have that check or wire be dishonored.    The shortage created in the settlement agent’s escrow account creates escrow liability for the settlement agent.

The time has come to re-evaluate practices relative to accepting checks and wires from lenders.    With reports that some large, national lenders are experiencing difficulty in finding adequate sources of funds for their mortgage origination business, we believe it is important for settlement agents to re-evaluate the practice of disbursing funds prior to said funds being “finally credited” to the escrow account.    Our concern with this practice includes reliance upon a check or wire from any lender, regardless of the size and apparent financial strength of the lender.

WIRE TRANSFERS

Many settlement agents believe that it is always safe to disburse against funds that are wire transferred to the escrow account.    Caution must be exercised to ensure that wired funds are actually credited to the settlement agent’s account prior to disbursing.    Please note that receipt of the Fed Reference number does not ensure the funds have been received and finally credited to the account.    This number merely confirms to the settlement agent that the sender has completed the wire transmission.    If the wire transmission is received after the receiving bank’s incoming wire cut-off time, the receiving bank will credit the account the next business morning.    Also, if the registration on the wire does not match the account registration or if the account number is invalid, the receiving bank will reject the wire.    An intervening solvency issue with the funding bank could lead to the dishonor of the wire transfer.    Therefore, settlement agents must confirm that wired funds have been finally credited to the account prior to disbursing.

If you have any questions, or need help with your title insurance needs, please do not hesitate to contact Paxin Closing and Escrow, LLC, at  866-752-4445.

TITLE INSURANCE

Commercial and/or Industrial Real estate has traditionally been an entities most valuable asset. It is a form of wealth that is protected by many laws. These laws have been enacted to protect an entities’ ownership of real estate and the improvements located thereon. Owning entities have rights or claims in and to the property that they are buying. Those who may have an interest in or lien upon the property could be governmental bodies, contractors, lenders, judgment creditors, the Internal Revenue Service, or various other individuals or corporations. The commercial and/or industrial real estate may be sold to your entity without the knowledge of the party having a right or claim in and to the property. In addition, your entity may purchase the real estate without having any knowledge of these rights or claims. In either event, these rights or claims remain attached to the title to the property that your entity is buying until they are properly extinguished.

Generally, an entity thinks of insurance in terms of the payment of future loss due to the occurrence of some future event. Title insurance is a unique form of insurance. It provides coverage for future claims or future losses due to title defects, which are created by some prior event.

It is of utmost importance that you receive clear title to the property when you purchase commercial and/or industrial real estate. In order to do so, you must first be informed of any existing rights or claims that may, in the future, threaten your title and possession to the property. Title insurance provides you with this protection.

In order to determine the status of title, Paxin Closing and Escrow, LLC, conducts a diligent search of the public records for those documents associated with your commercial and/or industrial property. We then examines those recorded documents in order to determine if there are any rights or claims that may have an impact upon the title to the property. The title search may reveal the existence of recorded defects, liens or encumbrances upon the title such as unpaid taxes, unsatisfied mortgages, judgments and tax liens against the current or past owners, easements, restrictions and court actions. These recorded defects, liens and encumbrances are reported to you prior to your purchase of the property. Once reported, these matters can be accepted, resolved or extinguished prior to the closing of the transaction. In addition, you are protected against any loss or damage resulting from recorded defects, liens or encumbrances upon the title that are unreported to you and which are within the scope of coverage of the particular policy issued in the transaction.

The title to your commercial and/or industrial property could be seriously threatened or lost completely by  "hidden risks." "Hidden Risks" are those matters, rights or claims that are not shown by the public records and, therefore, are not discoverable by a search and examination of those public records.  In order to protect you against this possibility, title insurance provides coverage for such claims.

Unlike other forms of insurance, the original premium is your only cost as long as your entity owns the property. There are no annual payments to keep your Title Insurance Policy in force.

If you have any questions, or need help with your title insurance needs, please do not hesitate to contact Paxin Closing and Escrow, LLC. at  866-752-4445.