When it’s time to sell your medical practice, and you own the land and/or the building on and through which you run your practice, a healthcare business attorney will ensure that you understand every part of selling your practice and the terms of the sale are fair to you. They will also draft all the related legal documents. Just as you should use a healthcare business attorney to understand all the legal implications of selling your practice, you should use a title agency to ensure that the sale of your practice actually goes through. Unlike many other states, Florida allows an attorney or a title agent to act as a closing agent for the sale of your practice. Therefore, you have the option of using a title agency operated by real estate law attorneys experienced in title or title agents.
The Role of the Title Agency
Title agencies have two main roles: (1) conducting a title exam; and (2) issuing title insurance.
When a title agency conducts a title exam, they research who owns the real property for sale, the physical boundaries of the real property and whether the property is encumbered by any outstanding mortgages, liens or other encumbrances, such as unpaid real estate taxes or mechanics liens. If the real property is encumbered, a title agency will assist you in paying off those unpaid real estate taxes or mechanics liens so that title is clear and there are no third-party claims to your property. Most of the time, any issues that arise during a title exam can be resolved, and often without delaying closing. However, where a significant issue or issues cannot be resolved, the buyer will likely walk away from the deal.
After conducting a title exam, a title agency will sell the seller and the buyer title insurance. Typically, the seller pays the title insurance premium for the buyer and the buyer pays the title insurance premium for their lender if financing is required. Title insurance protects the buyer and lender in the event a third-party claims that they have some sort of ownership interest in the property after the sale goes through.
Selling a Medical Practice
Buying and selling a property is often the most financially significant transaction an individual undertakes. The bottom line is that using a title agency can save both the seller and buyer unnecessary headaches in the long run.
