Defects in the chain of title can cause significant issues for property owners in the future. That’s why it’s important to catch these defects and resolve them prior to closing on a property. But despite the best laid plans, sometimes title defects can be missed even in a thorough title search. In this article, we are going to examine a common example of a title defect and how you can protect yourself from such a defect.
A Common Defect: A Missing Signature
Let’s look at an example of a common title defect we often see when underwriting title insurance. Imagine you are looking to purchase a piece of commercial property that was previously owned jointly by a husband and wife. Now let’s say that, for one reason or another, the wife forgot to sign the closing documents. This creates a defect in the chain of title and could result in a potential claim against the property in the future.
A Title Search is Paramount
Having a skilled title company conduct a thorough title search as part of the title insurance underwriting process is the best way to avoid title defects in the future. Even on the off chance that a defect is overlooked during a title search, your title insurance policy will give you peace of mind and help cover any claims that arise due to defects in the future.
Commercial Title Insurance Resources
If you are searching for a title company to partner with on your next commercial transaction, you've come to the right place. Commercial Partners Title Company is here to help guide you through the commercial title process and ensure your commercial transaction is a success. Our team of commercial real estate experts has been helping clients with their commercial transactions for decades. We can help prepare your documents for closing, underwrite a title insurance policy for your property, and answer all of your questions. Contact us today at our offices in downtown Minneapolis to get started.