Ownership and Encumbrance Reports are a type of report providing identifying information such as last recorded owner of a property, legal description of property, mortgages, open liens, lis pendens and judgments that are attached to the property or current owner.
This report is not a replacement for a full title search and therefore cannot support the issuance of a title insurance policy. The information provided in an O&E report is a reflection of public records as of the date of the search. If you would like to order an O&E report click here
The exchange can include like-kind property exclusively or it can include like-kind property along with cash, liabilities and property that are not like-kind. If you receive cash, relief from debt, or property that is not like-kind, however, you may trigger some taxable gain in the year of the exchange. There can be both deferred and recognized gain in the same transaction when a taxpayer exchanges for like-kind property of lesser value.
*Whenever you sell business or investment property and you have a gain, you generally have to pay tax on the gain at the time of sale. IRC Section 1031 provides an exception and allows you to postpone paying tax on the gain if you reinvest the proceeds in similar property as part of a qualifying like-kind exchange. Gain deferred in a like-kind exchange under IRC Section 1031 is tax-deferred, but it is not tax-free.