When it comes to commercial real estate, cost is often the first and most important thing on people’s minds – and title insurance is no exception. Many people want to know exactly who pays for title insurance in a typical commercial real estate transaction. That’s our topic for this article. We’ll discuss who is responsible for paying for title insurance in a commercial real estate transaction.
The Buyer’s Responsibility
In most commercial real estate transactions, the buyer is responsible for purchasing title insurance. However, a lot depends on the specific negotiations between the buyer and the seller. Whatever the seller and buyer agree to should be set out clearly in writing to avoid any confusion or conflict. That way every party understands what they are paying for and there will be no last minute changes at the closing table (hopefully).
There are some discrepancies between different states and counties in terms of how they handle title insurance. That’s why it’s essential to work with a title company that understands the customs of the location in which your commercial transaction is taking place.
Lender’s vs. Owner’s Title Insurance Policy
Remember – there is an important distinction between a lender’s title policy and an owner’s title policy. Lender’s title insurance is typically required by the lender and protects their interests in the property. Owner’s title insurance protects the buyer’s rights in the property. As such, it’s even more important to the buyer of the property.
Twin Cities Commercial Title Company
Commercial Partners Title Company has decades of experience serving clients in the Twin Cities and across the United States. Our team can walk you through the specific details of your next commercial real estate transaction, from beginning to end. Let us put our extensive experience to work for you and see how beneficial it is to work with a title company you can trust. Contact us today at our offices, located in downtown Minneapolis, to learn more about the title insurance process, and see how we can help you with your next commercial transaction.