Title defects are a common occurrence in commercial real estate transactions. When defects arise, it can lead to claims and protracted legal battles if you don’t have a solid title insurance policy. In this article, we are going to talk about some of the more common defects we find when writing commercial title insurance.
Public Records Errors
Filing or clerical errors happen all the time – especially when it comes to commercial real estate transactions. These errors or omissions can have an impact on your property deed or survey. A title search done by a skilled commercial title company is your best way to identify and rectify these errors before purchasing your property.
Unknown Liens on the Property
If a prior owner failed to pay or record any debts on the property, the lender (bank or financing company) may place a lien on the property to try and recover the debt – even though the debt is not yours. This is an important element to clear up before closing on a property.
Forgeries & False Impersonations
There may be forged or falsified documents that impact property ownership. Additionally, someone may have falsely impersonated a previous owner of the property. Both of these elements can jeopardize your title.
Minnesota Commercial Title Company
At Commercial Partners Title, we have decades of experience working with clients in Minnesota and across the country on their commercial real estate transactions. Commercial transactions can be complex, and you want to make sure you work with a title company you can trust. We are recognized as the experts in commercial transactions across the country. Perhaps the biggest benefit of having a title insurance policy is that, should any defects in title arise, any necessary legal fees will be covered under your policy. Contact our team of escrow agents, title closers, and underwriters today to get started with your commercial transaction.