Tips for Working with Title Companies on Real Estate Transactions with Your Self-Directed IRA

By Elsie Dudukovich0 Comments

As self-directed IRAs grow in popularity, there are still many third parties integral to a successful real estate transaction, such as title companies, who are unaware an IRA can hold nontraditional assets like commercial property or raw land.  When this situation arises, it can cause delays in the process of completing your investment.  Here is how you can help avoid possible setbacks.         
  • Inform the title company and any other third parties, in advance you are using your IRA to fund and hold the asset.  It will give them an opportunity to ask any questions they may have and be better prepared.
  • Remind the title company of the correct titling for the IRA’s percentage of ownership in the property.  The titling for your IRA’s investment might bring up questions or concerns because they are unfamiliar with this type of arrangement.  You might have the distinction of being the first person to introduce the concept of self-directed IRAs to their office.
  • The underwriters or other agents may have more in-depth questions about Equity Trust as a company or the ability of the IRA to hold nontraditional assets.  Our website provides direct links to the IRS, and explanations in what an IRA is permitted to invest. We are always happy to speak with the other parties involved with your investment to answer questions about Equity Trust and provide information about nontraditional investing in an IRA.
Specific sources on our website:
Buying Real Estate in your IRA: How it Works
Real Estate in your IRA: FAQs
IRS Publications that Outline Investments in your IRA

With 40 years in business Equity Trust has encountered these questions and doubts from title companies and other third parties in the past.  If you ever find yourself in the position of experiencing a possible delay due to a third party having hesitation over the IRA holding the asset, please feel free to reach out to us at 888-382-4727.