Computers, Internet, Rules Yield Changes

By Hunter, Joan | THE JOURNAL RECORD, February 23, 2001 | Go to article overview

Computers, Internet, Rules Yield Changes


Hunter, Joan, THE JOURNAL RECORD


Like most other industries, the title business is looking at many changes brought about by computers, the Internet and new legal regulations. A few of the challenges include:

* Electronic signatures -- The federal government and Oklahoma Legislature's passage of an e-sig law made electronic or digital signatures legal and enforceable, and facilitates the title industry's ability to reach the next level of efficiency in the delivery of real estate services.

This is a major step toward the paperless transaction; however, most Oklahoma county recorders are not yet able to accept digitized documents. There is a lot of work to be done in terms of systems integration, technology standards and a host of other issues.

American Guaranty Title has the ability to perform an electronic signature transaction through the network capabilities of our parent company, Old Republic Title.

* Reverse 1031 like kind exchanges -- 1031's are quite commonplace in commercial transactions and allow various tax benefits to the seller. But what do Reverse 1031's offer?

This vehicle provides the ability to close on the purchase of a replacement property before the relinquished property is sold. In the past, this action was performed at risk as there were no formal IRS guidelines. The usual requirements of a 1031 have not changed, but for a Reverse 1031 to be done within the scope of the exchange regulations "safe harbors" have been established in Revenue Procedure 2000-37 issued Sept. …

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