There are a lot of important details to keep in mind when it comes to commercial title insurance policies. In this article, we are going to talk about what you should know about title insurance policies in commercial real estate transactions.
There’s a Difference Between an Owner’s Title Policy and a Lender’s Title Policy
When it comes to commercial title insurance, there are two similar but distinct types: owner’s title insurance and lender’s title insurance. Each one of these policies provides similar coverage – the difference is in who the policy is providing coverage for. A lender’s policy provides coverage for the lender in the transaction, while the owner’s policy provides coverage for the owner or purchaser of the property. Lender’s title coverage is often required by the lender in a transaction, but it’s important to remember that a lender’s policy does not provide coverage for the buyer. If you, as the purchaser, want to ensure you are covered, you should purchase an owner’s title insurance policy.
You Should Start the Title Process Early
Underwriting a commercial title insurance policy takes time so it’s important that you give yourself and your commercial title company ample lead time prior to closing. This will give your title company enough breathing room to conduct a thorough title search through the history of the property ownership and furnish you with a policy that covers your interests.
Reach out to Commercial Partners Title Company
Reach out to Commercial Partners Title Company today to speak with our team of experts about your next commercial transaction. We employ a wide range of specialists to help you though the details of your commercial real estate transaction – from escrow agents, to title underwriters, to closing agents. With decades of experience at our back, we have the skills needed to make sure you have all your bases covered throughout the course of your commercial transaction. Contact us at our Minneapolis office to learn more about our team, services, and how we can help you with your next commercial real estate transaction.