Commercial real estate transactions involving title insurance can be complicated, but having some basic knowledge about the process before beginning will go a long way. In this article, we are going to answer a few frequently asked questions about commercial title insurance.
What is the Chain of Title?
When going through the commercial title process, you will likely hear your title company talk about the “chain of title” for your property. But what does that mean? Put simply, the chain of title is the chronological history of who previously owned the property in question. It is important to establish the specific chain of title to make sure that property ownership was properly conveyed from owner to owner throughout the history of the property. This will help avoid any potential issues down the line.
What is a Title Search?
A title search refers to the process of searching through the chain of title and examining the history of the property. This is typically the first step that your title company will undertake when furnishing a title insurance policy for your property.
What is Gap Coverage and do I Need it?
When a title insurance company furnishes a preliminary title report and commitment of title insurance to the property owner, there will be a short time (or “gap”) thereafter until closing occurs. Gap coverage helps protect the property owner’s interest in the property against any issues that crop up during this “gap” in coverage.
Commercial Partners Title Company
At Commercial Partners, we are recognized across the United States as experts in the field of commercial title insurance. We have decades of experience with commercial transactions of all shapes and sizes. Our team can help you through your next transaction and make sure you are fully prepared for the closing table. Contact us today at our downtown Minneapolis offices to learn more about our services and how we can assist you with your next commercial transaction.