Underwriting commercial title insurance policies can be made more complex by a multitude of factors. One such complicating factor is the involvement of trusts. When a commercial title insurance transaction involves a trust, there are some additional documents that may be required during the recording process. In this article, we will talk about a few things to keep in mind when dealing with trusts and title insurance.
The Basics of Trusts
Let’s start by defining the basics of trusts. Put simply, a trust is a legal entity whose purpose is to hold property for the benefit of others. Typically, a trust will appoint a trustee (which can either be a person or a corporate entity) whose job it is to manage the trust according to its terms.
Review These Documents
In a commercial title transaction involving a trust, there are some additional documents that need to be reviewed. Depending on the situation, these documents may need to be included in order to underwrite a title policy:
- Certificate of Trust. This trust agreement provides a general overview of the terms set out by the trust.
- Affidavit of Trustee. If the trustee is a person (rather than a corporate entity), it’s important to include a copy of the affidavit of trustee when recording title. If the trustee is a corporate entity, this does not apply.
Commercial Partners Title in Minneapolis, MN
At Commercial Partners Title Company, we are known as the experts in commercial transactions – both in Minnesota and across the United States! We have decades of experience facilitating commercial transactions of all shapes and sizes. Let us bring that expertise to your commercial transaction. Contact us today at our downtown Minneapolis office to learn more about the full extent of our services and see how we can help you through your next commercial transaction!