The practice of writing commercial title insurance can be complicated by numerous factors – such as the involvement of a trust. When a commercial title transaction involves a trust, there are some additional documents required. In this article, we will discuss three things to remember when dealing with trusts and title insurance.
Trusts 101
First thing’s first – what exactly is a trust? In simple terms, a trust is a legal entity that holds onto property for the benefit of others. A trust typically appoints a trustee (a person or a corporation) to manage said trust according to its specific terms. A trust can consist of real property or personal property. For our purposes (writing title insurance), we’re only concerned with trusts that govern real estate.
Documents to Review
When a title transaction involves a trust, there are a few additional documents we need to review. These documents may need to be added to the public record in order to underwrite a title policy:
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Certificate of Trust. This is the trust agreement that provides an overview of the terms of the trust.
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Affidavit of Trustee. If the trustee is a person, we need to include a copy of the affidavit of trustee when recording title. This does not apply if the trustee is a corporate entity.
Commercial Partners Title Company
Commercial Partners Title Company offers commercial title underwriting services throughout the state of Minnesota and around the United States. Over the course of three decades we have built a reputation in the title industry as experts in commercial transactions. We bring that level of expertise to each and every commercial transaction we work on. Contact us today to learn more about how we can help you through the stages of your commercial transaction. Our primary office is located in the heart of downtown Minneapolis but we provide title services throughout the country.