There are many documents that are important in a commercial title transaction. One of the most important is the preliminary title report. This article is all about the preliminary title report. We’ll explain what it is and why it’s essential in a commercial real estate transaction.
What is the Preliminary Title Report?
The preliminary title report is one of the most important documents in any given commercial real estate transaction. When you hire a commercial title company for your transaction, the first thing they do is begin a title search. This entails looking back through the entire chain of title for the property in question. As the search progresses, the title insurance agent is looking for any defects or irregularities in title that may impact the owner’s claim to the property. Once this search is completed, the findings are compiled into the preliminary title report.
What is Included in the Title Report?
The preliminary title report will include a lot of pertinent information, such as:
Any liens or encumbrances made against the title to the property
Any property rights that have been previously sold (such as mineral rights)
Who has title to the property
The title report is provided to both the seller and the buyer prior to closing and is used to clear up any potential issues before the closing takes place.
MN Commercial Title Insurance
At Commercial Partners Title, we have been assisting people with their commercial real estate deals for decades. If you are considering purchasing a commercial property, don’t hesitate to contact our team of title closers, escrow agents, and underwriters. Our team prides itself on being recognized experts in the commercial title industry in Minnesota and across the country. We are located in downtown Minneapolis, but we work with several national title companies to facilitate transactions all over the country. Reach out to us today for help with your commercial real estate transaction.