Title insurance benefits many parties involved in a typical commercial real estate transaction. In this article, we are going to discuss how title insurance benefits the various parties involved in a commercial real estate transaction.
The Purchaser
If another person brings a claim on your property due to an error in title, it puts you at a serious risk of financial loss. This is why savvy investors get a title insurance policy to cover their interests. An owner’s policy of title insurance will protect the purchaser of the property against any future claims that result from a defect in the chain of title. This includes any associated legal costs, as well as the cost to resolve the defect.
The Lender
Most commercial real estate transactions require lender’s title insurance to protect the lender’s interests. However, it’s important to note that the lender’s policy does not protect the owner of the property from any potential claims. So it’s a good practice to get an owner’s policy of title insurance as well.
The Seller
Title insurance also protects the lender from any potential damages in the event that the seller’s title is rejected by a potential purchaser.
Commercial Title Solutions
Commercial title insurance is an essential element to any commercial real estate transaction to protect your interests in your property. If a title defect arises in the future, an owner’s policy of title insurance will protect you. Our team of title insurance professionals work with clients in many industries and numerous states. With decades of experience, we are recognized as experts in commercial title transactions across the country. Contact us today to speak with our team at our downtown Minneapolis office.