Commercial title insurance benefits numerous parties involved in any given commercial real estate transaction, but many are unaware of these benefits. In this article, we are going to talk about how exactly commercial title insurance policies benefit the various parties involved in a commercial real estate transaction.
The Lender
In the majority of commercial real estate transactions, lender’s title insurance is required. That being said, it’s important to remember that a lender’s policy of title insurance does not protect the property owner. As its name suggests, it only protects the lender’s interest. With that in mind, it’s always a good idea for the buyer of the property to purchase an owner’s policy of title insurance.
The Buyer
Unlike lender’s title insurance, owner’s title insurance is often optional in commercial real estate transactions. But that doesn’t make owner’s title policies any less important. An owner’s title insurance policy protects the buyer of the property against any future claims brought against the property that result from a defect in the chain of title. Any legal costs needed to clear up the defect will be covered by the policy.
The Seller
And finally, the seller can also benefit from title insurance in a commercial real estate transaction. Title insurance protects the lender from any potential damages in the event that the seller’s title is rejected by a potential purchaser.
Start Your Commercial Transaction Today
Get the ball rolling on your commercial real estate transaction today by contacting the experts at Commercial Partners Title Company. Our team consists of title closers, underwriters, and escrow agents who are ready to guide you through the process and make sure you are prepared for the closing table. We have decades of experience working with clients across the United States. Contact us today at our downtown Minneapolis office to learn more about the extent of our services and see how we can assist you with your next commercial transaction.