Title defects are unfortunately common and can seriously jeopardize a person’s interest in a property. This is why a title search and title insurance policy are both so important when purchasing a new commercial property. In this article, we are going to talk about potential defects that can impact title and how a title search can help clear these defects up.
Title Defect Example
Title defects are mistakes that appear in a property’s chain of title. Here’s a quick example to illustrate a potential defect in title to a property. Let’s say that when the previous property owner sold the property 20 years ago, his wife was on the deed, but she failed to sign at the closing. This creates some confusion in the chain of title – a defect. The wife was listed as an owner but did not sign the closing documents. This defect should be cleared up prior to closing on the property to avoid any potential claims in the future.
The purpose of a title search is to find and resolve these types of title defects before a person purchases a property. However, sometimes title defects go unnoticed during even the most thorough of title searches. That’s why it’s important to protect yourself and your property with an owner’s title insurance policy.
Minneapolis Title Insurance Services
At Commercial Partners Title, we provide unparalleled title insurance services to each and every client. With decades of experience in the industry, we have the knowledge and the expertise needed to assist you through every step of your commercial transaction. To accommodate clients outside the state of Minnesota, we work with several national title companies to facilitate transactions across the country. Contact our team of experienced closers, underwriters, and escrow agents today for help with your commercial real estate transaction.