When working on a commercial transaction, the first thing most people are concerned about is cost. Buyers and sellers alike want to know how much everything is going to cost and, more importantly, who is responsible for paying the bill. In this article, we are going to explain who pays for what in a commercial transaction involving title insurance.
It All Depends on Negotiations
When it comes to title insurance on a piece of property, typically the buyer pays for the policy (since the policy will be covering their ownership interest in the property). However, that’s not always the case. So much depends on the results of the negotiations between the buyer and the seller. It’s possible that the buyer negotiates that the seller will be responsible for all title insurance fees related to the transaction. Whatever is agreed upon during the negotiations should be clearly written out so that both buyer and seller are aware of what costs they are responsible for.
Different Policies
It’s also important to note that there are several different types of title insurance. The two most common are the lender’s policy and the owner’s policy. The lender’s policy protects the lender’s interest in the property, while the owner’s policy protects the owner’s interest in the property. Your lender will often require that you have a lender’s policy. While it’s not always required, having an owner’s policy of title insurance is always a good idea to protect your interest in the property.
Commercial Title Experts
The commercial title insurance experts at Commercial Partners Title have decades of experience facilitating transactions for clients in Minnesota and across the country. Our team of title closers, escrow agents, and underwriters are here to help you through all the details of your commercial transaction. Reach out to us today and set up a time to discuss the details of your transaction. You can find us at our primary office in downtown Minneapolis. We serve the Twin Cities metro area, greater Minnesota, and the entire United States.