When a title company provides you with a title insurance policy, they will include a list of exceptions that are excluded from coverage. Some of these exceptions are standard and apply to all properties, while others are specific only to your property. These exceptions can include mortgages, deeds, easements, or any prior agreements made by the previous property owners. It’s essential to be aware of these exceptions and how they impact your policy coverage. In this article, we are going to talk about three of the most common title insurance exceptions that you need to understand when purchasing title insurance.
Easement Rights
Easements are quite common when dealing with commercial property and can have a huge impact on your title insurance policy coverage. Your title company will identify all easements impacting your property during the title search so you can address these as needed.
Use Restrictions
Certain agreements like deeds and leases can impose restrictions on the use of a particular property. For example, if you’re purchasing a retail property but also intend to use part of the property for residential means, there may be a use restriction in place preventing that. Again, it’s important to understand the restrictions that are in place to you can address them early in the process.
Building Restrictions
There may also be agreements in place on the property that restrict the location, size, and architecture of the building. For example, if you purchase a 4 story retail property and decide to ad several stories of apartments above that property, you may not be able to because of building restrictions.
Commercial Partners in Minneapolis, MN
At Commercial Partners Title Company, we provide commercial title services to clients all over the United States. We are recognized as experts in commercial transactions in Minnesota and across the country. Our team brings decades of experience to the closing table so you can rest assured that your transaction is in good hands. Contact us today at our office in downtown Minneapolis to discuss the details of your next commercial transaction and find out how we can help.