While a tax return can feel like a little surprise stimulus, nobody wants to be hit with an unexpected tax bill. Being told that you owe back taxes is never pleasant, but it can be especially problematic if you find out that you owe taxes associated with a commercial property. And while you may do everything in your power to pay your property taxes, that doesn’t mean you’ll always be in the clear. In these situations, title insurance can protect you from a major financial headache.
Title insurance is an incredibly useful policy that protects you against claims associated with your commercial property. If a long lost heir files a claim that they actually own the property you purchased, if a neighbor claims that a fence is actually positioned on their property, or if the previous owner failed to pay property taxes, you are protected because of the one-time fee you paid for an owner’s title insurance policy.
While this policy will not protect you from any new property tax liens that are created after the origination of the policy, any issues that pre-date your interest in the property would be covered. If a valid entity or a potential scammer sends you a letter stating that you owe back taxes or a mechanic’s lien is associated with your new commercial property, all you need to do is forward that correspondence to your title insurance provider and they will take care of the rest. Not only will we sort everything out, but we’ll provide the financial coverage in the unlikely event of a legitimate claim or lien.
If you want to avoid any unexpected tax-related consequences with your new commercial property, purchase a comprehensive owner’s title insurance policy. For assistance developing and securing a personalized owner’s title insurance policy, connect with the team at Commercial Partners today at (612) 337-2470.