Commercial Closings - The Price Of Prevention Vs. The Cost Of Failure

Commercial Closings - The Price Of Prevention Vs. The Cost Of Failure 

04/28/2026 03:20 AM       Mark Goodman

In almost all walks of life, it is better to prevent something than to try to fix it after the fact. Changing your car’s oil regularly can lower the risk of costly engine repairs down the road. Wearing sunscreen is a simple preventative measure for stopping skin cancer in its tracks. Brushing your teeth can help ward off cavities. In today’s blog, we take a closer look at some of the costs to prevent common issues in the world of commercial real estate and some to the expenses you may incur if you fail to account for these potential issues.

Preventing Vs. Fixing In Commercial Real Estate

Let’s explore some of the prevention costs you can assume, what it gets you and how much you may be saving by preventing certain problems that can develop during the cost of a commercial purchase.

• Title Search - A commercial title search is one expense you certainly don’t want to skip. Title searches can discover liens, unpaid debts and documentation errors that could prove incredibly expensive to rectify. Because municipal debts and property liens remain with the property, not a specific individual, these debts and expenses can become your problem to fix once you become the owner.  

• Land Surveys - A land survey will tell you everything you need to know about the property’s location and boundary lines. If the survey reveals that a fence or other type of structure was actually built on a neighbor’s property, it can ensure the problem is addressed prior to purchase so that you’re not on the hook to fix it once you close. 

• Property Inspections - Property inspections also run a couple hundred bucks and up and can determine if there are any major issues with the structural property that need to be fixed prior to closing. If the foundation is cracked, mold exists or there are rampant code violations,they’llbe discovered with a property inspection.

• Title Insurance - Finally, title insurance is a policy that can protect you against any issues that are discovered once you take over as the owner. As long as the issue developed prior to closing (for example, a title insurance policy would not protect you against your own unpaid property taxes), a title insurance policy will protect you from having to pay out of pocket to settle newly discovered title defects. This policy only requires a one-time payment to secure, and it provides coverage for as long as you own the property, potentially offering decades of protection. A title insurance policy can save you money in the event new issues arise or someone claims your purchase was actually invalid for any number of reasons.

There’s so much uncertainty in the world of commercial real estate because it’s almost impossible to know a property’s entire history, but you can buy peace of mind by having investigative research performed. Let the team at Commercial Partners protect your financial interests by helping research a property and by setting you up with a comprehensive title insurance property.

For more information on how we can help remove risk from the equation, reach out to the team at Commercial Partners today at (612) 337-2470.