What is Commercial Title Insurance?

05/14/2024 04:17 AM Mark Goodman

Commercial title transactions can get complex and confusing rather quickly. It’s often beneficial to strip things down to their base elements in order to more easily explain their utility and benefits. In this article, we are going to explain what exactly commercial title insurance is and why it’s beneficial in most commercial transactions.

Commercial Title Insurance Defined

Let’s talk basics. What exactly is commercial title insurance?

A commercial title insurance policy provides coverage to the parties involved in the purchase of a commercial property. In essence, title insurance is a means of protecting your ownership claim to the property you are purchasing. The next question many people ask is: why would I need title insurance? Well, sometimes (especially with older properties with long ownership histories) the chain of title is not as clean and accurate as you might hope. Perhaps there were recording errors in the past, or an omission of a lien on the property. These types of errors can cloud title and threaten your ownership claim.

Another party may potentially be able to use such an error to bring a claim against your property. When this happens and you are covered by a commercial title policy, you can rest assured that your title company will resolve the claim and that your ownership interest in the property is secure.

Title Solutions for Your Commercial Transaction

Commercial Partners Title Company offers title solutions for all types of commercial transactions. We have more than two hundred years of experience among our team of title professionals. Allow us to put our skills and expertise to work on your next commercial real estate transaction. We can walk you through the entire title process. Talk to a commercial title expert at Commercial Partners Title Company today by contacting us at our Minneapolis office. We work on commercial real estate transactions in Minnesota and across the country.