There are many common snags that can trip up a commercial real estate transaction if you’re not careful. But being aware of these snags can help you avoid them before they mess up your transaction. In this article, we are going to offer a few tips for avoiding these potential snags during the commercial title insurance process.
Foregoing an Owner’s Title Insurance Policy
In the realm of commercial title insurance, there are two types of policies:
- A Lender’s Title Insurance Policy (which provides protection for the lender)
- An Owner’s Title Insurance Policy (which provides protection for the owner)
A lender’s title insurance policy is required in nearly all commercial transactions, but the owner’s title policy is optional. As a result, some people choose to forego an owner’s title policy when closing on their transaction to try and save a little money. This is not a good idea. Owner’s title policies cost a little bit of money up front and can save you a lot of money in the long run should you ever have a claim brought against your property.
Not Communicating with Your Title Company
Lack of communication between the buyer and the title insurance company can snare the entire process. If there is confusion among parties due to a lack of communication, or the buyer fails to provide necessary documents during the process, the whole transaction can be put at risk.
Commercial Partners Title Company
At Commercial Partners Title Company, we have developed a reputation for being the experts in commercial title transactions in Minnesota and across the country. No matter how simple or complex your transaction is, we have the skills and experience to walk you through all of the details and make sure you are fully prepared for the closing table. Contact us today at our downtown Minneapolis office location to learn more about the services we provide and how we can help you with your next commercial transaction.