Helping clients acquire title insurance is just one aspect of what we do at Commercial Partners, and it’s something we strongly recommend to anyone interested in purchasing commercial property. Although technology is making it easier for property records to be researched and tracked, one unexpected oversight could end up costing you hundreds of thousands of dollars or more if there is a legitimate issue with an acquired property.
Although the overall rate of these instances is very rare, we want to use today’s blog to look at eight title troubles you could encounter when researching a property, and we discuss why having title insurance is so important in these instances.
8 Troublesome Title Issues
Again, we don’t want to suggest that these issues are common by any means, but when they do occur to the unprepared buyer, they can be a disaster. Here’s what you could potentially run into while researching or purchasing commercial property.
-
Undisclosed Heirs - You may assume that you are purchasing a property from an individual who has the right to sell it, only to find that an undisclosed heir actually had a claim to the purchased property.
-
Recording Errors - A recording error at the county clerk’s office may not seem like a huge deal, but if it goes uncorrected for months or years, eventually it could cause problems for your property.
-
Falsified Records - A scammer may attempt to sell a property that they don’t actually own. If you don’t learn about this until after the fact, they may already be gone with your money.
-
Undiscovered Liens - A title service company will do everything they can to uncover liens against a property, but if a lien is discovered after you’ve purchased the property, it may be your debt to settle unless you have title insurance.
-
Separation Issues - If a party claims to be divorced, but the process is not completely finalized, they may not have the legal ability to actually sell the property without the spouse’s consent.
-
Incorrect Property Description - An accurate property description is essential. If the details on a title do not accurately represent the property, you’ll be thankful for title insurance.
-
Mechanic’s Liens - If businesses or contractors who performed work on the property have yet to be paid for their services, a mechanic’s lien may exist on the property.
-
Probate Issues - Properties that go through the probate and inheritance process may run into some probate-related issues compared to someone who is buying a property from a single party.
Nobody expects to run into any of these issues, but when they do, they can create a financial nightmare unless you are protected with an owner’s title insurance policy. Title insurance provides financial protection and peace of mind for as long as you own the property, whether that’s one day or 30 years into ownership. Let us set you up with a policy that’s right for you and your family so that you don’t have to worry about an unforeseen title issue down the road.
For more information, or for help with other title-related matters, reach out to the team at Commercial Partners today at (612) 337-2470.