There are many terms that come up in most commercial real estate transactions. Two of the most common terms you will likely run into during a commercial title insurance transaction are the title commitment and the title policy. In this article, we are going to explain the difference between the title insurance commitment and the title insurance policy.
Title Commitment
The title commitment is a document that states that a title company is willing to provide title insurance coverage. This document is provided to the purchaser prior to closing and lists all the potential exclusions, exceptions, and issues noted by the title company. This commitment does not guarantee that no issues will crop up in the future, but it will list potential issues that the title company sees with the property. Pay careful attention to the exclusions listed in this commitment as these items will not be covered by the title policy.
Title Policy
The title policy provides coverage according to the terms set in the title commitment. If the purchaser agrees to the terms set forth in the title commitment, they can decide to move forward with the title company who issued the commitment. After closing, the title policy will be issued and the purchaser will be covered by the title policy.
Minnesota Commercial Title Company
Commercial real estate transactions can be complex and it’s important to work with a title company you can trust. Commercial Partners Title brings decades of experience to each and every client we serve. Our title closers, escrow agents, and underwriters will work with you to ensure a smooth transaction. If you are looking for a title insurance company to help with your commercial real estate transaction, we are here to help. Contact us today at our downtown Minneapolis office to set up a time to chat with our team of commercial title insurance experts.