In a previous article, we defined three of the most important terms that often pop up in commercial title transactions. In this article, we are going to look at a few more essential commercial title insurance terms that you should be familiar with before diving into a transaction.
Chain of Title
The chain of title is simply the chronological order of how the property was conveyed from owner to owner. This goes all the way from the original owner to the present owner.
A title search is an essential first step in underwriting title insurance on a commercial property. During a title search, your title insurance underwriter will go back through the entire chain of title – examining the history of transactions relating to the property. Using the information gathered from the initial title search, your insurer will prepare a preliminary title report detailing the findings and any potential issues in title.
There are multiple steps in the title insurance process. Once the title company provides the preliminary title report and commitment, there is a gap in time until the insured closes on the property and becomes insured. Gap coverage covers the insured for any title defects that may arise during this “gap” in coverage.
Title Experts in the Twin Cities
At Commercial Partners Title, we pride ourselves on our commitment to service and the relationships we build with our clients. Our title insurers, underwriters, and closers are recognized across the United States as experts in the field of Commercial Title Insurance. Reach out to us today to set up a time to chat with our team of title insurance professionals. Our main office is located in downtown Minneapolis, but we serve clients throughout the Twin Cities, greater Minnesota, and the entire country!