Title insurance is a type of insurance policy that protects you in the event that an unexpected issue arises with your property weeks, months or years after you purchase the property. In many instances, title insurance is a requirement in order to receive a loan from a lender, but there is an additional policy that protects the buyer’s financial interest as well. But how do you go about getting a title insurance policy for a commercial property that you are in the process of purchasing? In today’s blog, we explain what the process to obtain commercial title insurance looks like.
Purchasing A Commercial Title Insurance Policy
The process for getting a commercial title insurance policy is a little more extensive than getting homeowner’s insurance for a residential property. Commercial properties tend to be more complex than residential properties, and oftentimes they are more expensive, which means more research needs to be conducted to make sure everyone’s interests are protected. Here’s how the process typically work:
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Outreach And Application - Acquiring commercial title insurance begins by connecting with a commercial title company like Commercial Partners. Let them know that you’re looking for a commercial title insurance policy, and they’ll ask you a number of questions about the property. They’ll also likely request that you provide them with certain documents, like surveys, environmental reports and mortgage information. Providing them with the right documents really helps to get the ball rolling on your policy.
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Additional Research - The title company will conduct additional research into the property to ensure it has a clear title. Any “clouds” or defects on a title could impact the cost of your policy, so they’ll work to uncover and help you clear any potential defects on the title of the property you are considering purchasing.
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The Estimate - After the title company has done their research, they will provide you with a preliminary title report that explains a number of different aspects about the property’s title. Included in this report will be a section detailing the estimated cost to insure the title and some information as to what would and wouldn’t be included in this coverage.
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Securing Coverage - If you are pleased with the estimate and the coverage it provides (or you ask to tweak your coverage options), the title company will then to create a policy. It is wise to thoroughly review this policy or run it by your lawyer so you know exactly what you’re getting. Signing the policy and paying the one-time premium secures your coverage.
A lot of the work happens behind the scenes by a title company, but you can speed up the process by helping the company get the documents and information they need to determine a fair title insurance policy. At Commercial Partners, we can help create and offer title insurance, streamlining and centralizing the process of acquiring title insurance. For more information about title insurance, or to learn more about insuring your property, reach out to the team at Commercial Partners today at (612) 337-2470.