The commercial title insurance industry is replete with terms that may be confusing and foreign to the average person. Nevertheless, it’s important to understand some of the basics before diving into a commercial transaction. In this article, we define a few essential commercial title insurance terms.
Title Policy (Owner’s & Lender’s)
The first thing we want to define is the title insurance policy itself. This is an underwritten insurance policy from a title company that protects your interests in a property. That’s pretty self-explanatory, but there is also a distinction between owner’s title policies (which protect the owner of the property) and lender’s title policies (which protect the lender).
Title Search
In essence, a title search is an early stage of the title insurance underwriting process in which a title company looks back through the entire history of title to a particular property and clears up any errors or defects that may impact the new buyer moving forward.
Endorsements
Every commercial property is unique in its own way and, as such, there is no one-size-fits-all title policy that can be deployed for every property. That’s where endorsements come in. Endorsements are tools used to tweak the title insurance policy to meet the needs of the property and buyer in question. There are many types of endorsements that can be used and your title company will work with you to find the right ones.
Work with an Experienced Commercial Title Company
Commercial Partners Title Company has hundreds of years of combined experience facilitating commercial title transactions. We are widely known as experts in commercial transactions both in the state of Minnesota and across the United States. Give us a call today to learn about our wide ranging commercial title services and see how we can help you deal with the details of your next commercial transaction. You can reach us at our Minneapolis offices – whether you’re in Minnesota or across the country – we are here to help.