Commercial title insurance offers many benefits to those purchasing commercial real estate. But many people don’t fully comprehend the true value of a commercial title policy. In this article, we are going to explain the basics of commercial title insurance and explain why it is such an essential aspect of any commercial real estate transaction.
Commercial Title Insurance 101
When you purchase a new piece of property, you are not buying the land itself. What you are actually buying is the title to that piece of property. That title contains the entire history of who previously owned the property. However, this chain of title is not typically as simple as a consecutive list of property owners. There are many other items that can potentially be recorded in the chain of title, including:
- Construction Liens
- Taxes that are Past Due
- Restrictions and Limited Rights
If there are any errors in the recording of these items in the chain of title, another party may be able to bring a claim against your property.
How Commercial Title Insurance Protects Your Property
If you have an owner’s policy of title insurance, your interests in the property are protected against any future claims that may be brought against your property. That means your title company will cover the costs associated with defending your rights to the property should a claim arise.
Commercial Partners Title Company
At Commercial Partners Title Company, we pride ourselves on our attention to detail and unparalleled customer service. For decades, we have been facilitating commercial real estate transactions of all types in Minnesota and across the country. Let us put our experience to work for you on your next commercial real estate transaction! You can find us at our main offices located in downtown Minneapolis.