Title insurance is an important element of any commercial real estate transaction, but many investors don’t understand why that’s true. In this article, we are going to talk about what can happen when you don’t have title insurance.
Title Defects
Title defects may be a rare occurrence, but they are very real and can have a significant negative impact when they arise. Why are title defects a rarity? Simply because most commercial real estate transactions do not occur without title insurance. Lender’s typically always require title insurance because they won’t take the risk of a potential title defect. But many owner’s do not have that save risk aversion – which is why not all owners opt to purchase an owner’s policy of title insurance. However, it’s crucial to have the protection of an owner’s policy of title insurance in the event that a title defect arises and someone brings a claim on your title. Remember, the lender’s title policy only covers the lender – not the owner – in the event of a title issue.
Commercial Title Services
At Commercial Partners Title, we are recognized as the experts in commercial transactions both in Minnesota and across the country. We partner with national title companies to provide the best possible service no matter where your transaction is taking place. Reach out to our team of escrow agents, title closers, and underwriters today to learn more about the title insurance process and how to get started. Our primary office is located in downtown Minneapolis, but we work with clients throughout the United States.