We all want to save money when we can, but we also know that there are some things you shouldn’t cut corners with. It’s our belief that a commercial title search is absolutely one of these things. The downsides are simply too large and the process is oftentimes quite complex, especially for those with limited experience in the title service world. If you’re wondering if you can be the exception to the rule and save yourself some money by conducting your own title search before a commercial transaction, let us explain why you may want to reconsider that decision.
Should I Do My Own Commercial Title Search?
There are a number of different reasons why you should trust a commercial title search to a professional company instead of attempting to save a little money by doing it on your own. Here are the biggest reasons:
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Massive Financial Liability - If you try to conduct a title search on your own and end up missing some valuable information, either because of an obvious error or because you simply aren't familiar with where to look, you may end up in a financial mess. Perhaps you purchase a property from someone who actually had no legal right to sell you the property, or years after the purchase another party comes forward with a legal claim to the property. You may not actually have a claim to the property you believed you legally acquired, and even if you do, it could end up costing you a lot in legal fees to get it all sorted out. Commercial real estate transactions typically involve large sums of money, so it’s worth it to have the financial peace of mind knowing the title search was conducted correctly.
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Complex - We’ve already touched on the topic, but title searches can be quite complex, especially if you’re purchasing an older property or one that has changed hands pretty frequently over the years. It can be difficult to track down the right information because it’s never all located in one place. Don’t try to track down all relevant title information on your own, especially if you’ve never done something like this in the past.
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Who Can You Trust? - We’ve heard from prospective clients in the past who have asked us why they needed a title search if the previous owner told them the title is clean. You could take their word for it, but if they missed something or the title wasn’t actually as clean as they said it was, it will be your mess to clean up after the purchase. Instead of putting your trust in a seller, trust a third party to provide a thorough title search so that you know exactly how the title stands prior to purchase. There may be liens, easements or encroachments that you need to know about before you put in an offer.
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One Stop Shop - Finally, working with a title search company can also ensure you get set up with other important necessities during the acquisition, like title insurance. Title insurance provides you peace of mind and potentially financial compensation in the event that someone eventually makes a claim on your title. If you missed something during your title search and don’t have the right insurance, someone else may be able to stake claim to the land that you believe you rightfully purchased. A title service company can clear a title and set you up with insurance to protect your financial interests now and in the future.
Simply put, the stakes are too high to risk performing a title search on your own. Take the stress out of the process and know that it is being done right by outsourcing the job to a team of professionals. In the greater Twin Cities area, we hope you’ll connect with the team at Commercial Partners. Give our team a call today at (612) 337-2470.