When it comes to commercial title insurance, there are a variety of traps and pitfalls that a person may fall into if they’re not well-versed in the process. In this article, we are going to discuss a few potential pitfalls you may run into throughout the course of your commercial title transaction.
Opting Out of an Owner’s Title Insurance Policy
There are two basic types of commercial title insurance – the lender’s policy (which protects the lender) and the owner’s policy (which protects the owner). The lender’s policy is required, but the owner’s policy is not. As a result, some people opt out of the owner’s policy to save a little money. However, opting out of owner’s title insurance can come back to haunt you if a defect in title allows someone to bring a title claim against your property. Purchasing an owner’s policy can help you avoid these headaches.
Not Communicating with Your Title Company
Each title insurance policy is unique to the property it insures. It’s important to communicate directly with your title company early in the process so that they can tailor the title insurance policy and any necessary endorsements to fit your specific needs.
MN Commercial Title Insurance Underwriters
When you’re closing on a commercial real estate transaction, it’s important to have a skilled title company at your side throughout the process. At Commercial Partners Title, we have been working with clients throughout the United States on their commercial transactions. If you are in need of an owner’s policy of title insurance, we are your go-to experts. Reach out to us today to talk about the details of your next commercial transaction. Our team can be reached at our downtown Minneapolis office.