Despite the importance of having an owner’s policy of commercial title insurance, some people are hesitant to purchase a policy during their commercial transaction. One of the most effective ways to illustrate the importance of commercial title insurance is to talk about what can happen if a person chooses not to purchase a title insurance policy. In this article, we are going to discuss some of the potential drawbacks of not purchasing an owner’s policy of title insurance on your commercial property.
Potential Legal Fees
When a party brings a title claim against your commercial property and you do not have a policy of owner’s title insurance, you are vulnerable and on your own. It’s your responsibility to defend your ownership claim to the property and prove that it’s yours. This can be a long, drawn out process that requires large legal fees that will come right out of your pocket.
On the flip side, if you have an owner’s title insurance policy protecting your rights in the commercial property, you are protected from claims, as laid out in your title policy. If a party brings a title claim against your property in the future, your title insurance policy will protect you and your ownership rights. Your title company will defend your claim to the property and cover any necessary legal fees.
Experts in Commercial Title Insurance
At Commercial Partners Title Company, we work with clients in Minnesota and across the country on all types of commercial transactions. Our team consists of escrow agents, title closers, underwriters, and more – all ready and waiting to help you. Reach out to our team of experts today to see the extent of our services and discover how we can help you through the ins and outs of your next commercial real estate transaction.