Title insurance is important – more important than many real estate investors realize. In this article, we are going to provide a handful of reasons why it’s important to secure a title insurance policy for your commercial property.
Mistakes in the Chain of Title
For example, a mortgage or deed found in the chain of title may have been signed by an underage person, or someone who was insane or incompetent. We have also seen deeds and mortgages in title that are forgeries. These can all invalidate your claim to the property if you are not protected by a title insurance policy.
Issues with Heirs
There are also potential issues that can arise with property heirs. For example, an heir who was incorrectly presumed dead may appear later and make a claim on the property. Additionally, if title is transferred to an heir, it may be subject to a federal estate tax lien.
Court Costs & Attorney Fees
If someone brings a claim on your property, you need to fight it in court – which can be costly. Your title insurance policy will cover the cost of court and attorney fees in the event that a claim arises. Your insurance policy will also reimburse you for losses covered by the policy.
Title Insurance in Minneapolis
Title insurance is important in any commercial real estate transaction. It’s important that you get both a lender’s policy and an owner’s policy to fully protect your interests. Contact Commercial Partners Title today to discuss your transaction. Our escrow agents, closing officers, and attorneys have decades of experience and are recognized as experts in commercial transactions across the country. Contact us today at our downtown Minneapolis offices to learn more about how our commercial title insurance experts can help with your commercial transaction!