real estate | finance
Benjamin M. Soto
Providing Good Service is Paramount to Business
by Jessica White
enjamin M. Soto, founder, president and CEO of Paramount Title & Escrow, prides himself on his local roots. “I live four houses down from where my grandmother used to live,” stated the Ward 4 resident. “I grew up here, I went to school here (including law school)… and I participate in the fabric of this city.” Soto founded Paramount Title & Escrow in 2000. He first opened an office on 14th Street, NW, and soon thereafter opened another office in Greenbelt, Maryland. “I was at a firm in Maryland, where I made partner, doing bankruptcies, civil litigation and real estate settlements. I really enjoyed the settlement work and ultimately went out on my own,” said the entrepreneur. In 2006, the Washington Business Journal ranked Paramount Title as the ninth largest title company in the region. “Part of what separates Paramount from other companies is that our infrastructure is larger than others, so we can service high volume clients. And my employees have been with me for a long time. They have the knowledge and experience that prevents a lot of problems and ensures a smooth settlement,” said Soto. Title costs are probably the least understood of all charges when a person goes to settlement on a real estate purchase. And therefore, some people may be tempted to reduce closing costs by opting out of the costliest of those charges, title insurance. There are generally two title policies issued – a lender’s policy, which is required for anyone using a loan to finance the purchase, and an owner’s policy. “It is extremely important to have title insurance. In my opinion, it should not be optional, but it is (for an owner’s title policy), and it costs only an additional $35 or so,” said Soto. “There are a lot of title issues that can arise. You can have new construction, but the land is not new, and many things can pop up that can impair your ownership of the property. There can be outstanding interests, liens, judgments… Some things are “undiscoverable.” Forgeries, for example. If a deed is recorded in 1998, how is the title company supposed to know if the signature of one of the owners was forged? Or say that an estate was opened through someone who acted as a personal representative of the deceased but this person may in fact not have been authorized to do so. A family member may not disclose that there is a will and later a sibling or someone else comes forward with a will,” he posited. Title insurance will protect the buyer of any property disposed of under these types of circumstances and more. “Tenants rights can also be an issue in DC. If the court found that a property was sold to a buyer without following the tenants rights laws, the deed could be vacated by the court… Title insurance would ensure that the buyer would have a lawyer provided by the title insurance company and if the buyer lost, title insurance would pay for the value of the property or the policy… There are a lot of bad actors out there. It is almost like we have to be title policemen,” he stated. Since the credit crunch, Paramount has seen an increase in its commercial business. “We are doing a lot of high end developments and settlements for builders, particularly in Columbia Heights and 13th Street, NW. Units here are still selling,” he commented. Personally, Soto is active in local politics and the business community. He served as Mayor Fenty’s treasurer on each of his campaigns (both council and mayoral). Currently, he serves on the Board of Directors for Eagle Bank, a publicly traded local bank with three branches in DC and six in Maryland, and is on the Board of Directors for the Sports and Entertainment Commission. “I grew up in this city and I love this city, and I think it is important to be engaged in civic affairs and be active in the community – and it is good for business too.” Jessica White, also known as “Ms. Mortgage Maven,” is a mortgage consultant with Tenacity Mortgage. Call or email her to discuss your home purchase or refinancing needs. She can be reached at 202-607-4449 or Jessica@msmortgagemaven.com. You can also apply online at www.msmortgagemaven.com. ■
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54 ★ DC NORTH | October 2007