Title insurance protects your ownership rights of a property against any future claims due to defects in the prior chain of title. This makes sense when you’re purchasing a piece of property that is decades old, but what about a brand-new construction? In this article, we are going to talk about why you still need an owner’s policy of title insurance even if your property is brand new.
Title Insurance for Newly Constructed Property
Having an owner’s policy of title insurance is essential regardless of when your property was constructed. When you build a new piece of property, you may assume that you are the first owner of the property. However, it’s quite likely that there have been several prior owners of the property – whether they owned the unimproved land or a prior physical property that was torn down. If there have been any prior owners of the land on which you are building your property, that means there is the potential for title defects. An owner’s title policy will cover you for any of these defects.
In addition to that, when you are dealing with newly constructed property you need to be cognizant of your builder. We’ve run into situations where a builder did not pay their supplier or subcontractors. As a result, the subcontractor placed a lien on the property.
Minnesota Commercial Title Insurance
Title insurance is an important element of any commercial transaction. It’s equally important to work with a title company you can trust. At Commercial Partners Title, we have decades of experience facilitating commercial transactions and title insurance for clients across the country. We bring that level of knowledge and expertise to the table for each and every one of our clients. We are known as experts in commercial transactions across the United States. Reach out to our commercial title experts today at our Minneapolis office to get started with your commercial transaction.