When it comes to commercial title insurance, there are two basic types of policies you can purchase: owner’s title insurance and lender’s title insurance. In this article, we are going to talk about some of the key differences between owner’s commercial title insurance and lender’s commercial title insurance.
Lender’s Title Insurance Protects the Lender
As the name implies, a lender’s title insurance policy provides coverage for the lender in the commercial transaction. It protects the lender from any potential future claims due to errors, defects, or previous liens in the chain of title. Lender’s title insurance is often required by the lender in a commercial real estate transaction. The lender wants to protect their interest and lower their risk in any transaction, and a lender’s title policy is an effective way of doing that.
Owner’s Title Insurance Protects the Owner
On the other end of the spectrum, an owner’s title insurance policy protects the owner or the purchaser of the commercial property. Purchasing an owner’s title insurance is typically not required in a commercial transaction, but is always a good idea as it is a cost-effective way to protect your interest as the owner of the property and give you peace of mind knowing that your property is protected against potential future claims.
Get the Help You Need with Your Commercial Transaction
Get the help you need with your next commercial transaction by contacting the expert team at Commercial Partners Title Company today. Our commercial title searchers, underwriters, escrow agents, construction disbursement specialists, and more are ready to guide you through the commercial real estate process so that you’re ready for the closing table. Reach out to us today at our Minneapolis offices to learn more about the benefits of partnering with a skilled and experienced title company on your next commercial real estate transaction.