We’ve talked extensively about the importance of obtaining an owner’s policy of title insurance when purchasing commercial property. One question that often arises is: “Can’t I just use the seller’s owner’s title insurance policy?” In this article, we’ll explain why you can’t use the seller’s title insurance policy when you close on a new property.
Why You Need Your Own Policy of Owner’s Title Insurance
There are several reasons why you need your own policy of owner’s title insurance, and why you cannot just use the seller’s. Here are a few of those reasons:
- There may be a judgment against the seller that might cause a discrepancy in title.
- An owner’s policy covers the insured for the purchase price of the property. It’s quite likely that the purchase price has changed since the prior owner took out their policy.
Despite these reasons, it can be beneficial to obtain a copy of the current seller’s title policy.
Title Insurance Company
If you are thinking about purchasing a piece of commercial real estate, it’s important that you get an owner’s policy of title insurance. If you have any questions about the specifics of your transaction or your owner’s policy of title insurance, contact us today. Commercial Partners Title Company has been facilitating commercial title transactions across the country for decades. Our title closers, underwriters, escrow agents, and other staff members have a combined 200 years of experience in the commercial title industry. With that level of experience you can rest assured that your transaction is in good hands. Contact us today at our office in downtown Minneapolis and speak with our experts about your commercial transaction.