Title insurance is an essential element of any commercial real estate transaction. There are numerous benefits to purchasing a title insurance policy. That being said, title insurance doesn’t cover everything under the sun. There are some inherent limitations as well. In this article, we are going to discuss the benefits and limitations of commercial title insurance.
The Benefits of Commercial Title Insurance
In the most basic terms, a title insurance policy guards your interest in a piece of property against future claims brought against the property by other parties. For example, let’s say you bought a piece of commercial property. Several years later, another person claims that they own the property because it was gifted to them by their father. This is a potentially legal nightmare. If you don’t have a title insurance policy, you will likely have to pay to fight this claim in the court system. But if you have a title insurance policy, your title company will resolve the claim at no additional cost to you.
The Limitations of Commercial Title Insurance
Title insurance helps cover your interest in a particular property, but it doesn’t cover everything. For example, title insurance does not cover property damage, or any injury claims brought by someone injured on your property. These are typically covered under a separate homeowner’s insurance policy.
Get Help with Your Next Commercial Real Estate Transaction
Get the help you need with your next commercial real estate transaction by contacting the experts at Commercial Partners Title Company! Our team consists of escrow agents, title closers, and underwriters who are standing by to help you through all the minute details of your transaction. We have decades of experience in the industry and are recognized as the experts in commercial transactions. Contact us today at our Minneapolis office to learn more about how we can help!