Title insurance is an essential aspect of any commercial real estate deal, but the concept can be confusing for some people. In this article, we are going to offer up a few tips for understanding title insurance.
How Title Works
When you close on and acquire a new property, you are not actually purchasing the land itself. Rather, you are purchasing title to the property. Within the title is a history of prior ownership of the property. But this history is seldom as simple as “Person A sold the property to Person B” and so on. Other items that may be recorded in the title history include:
- Construction Liens
- Taxes that are Past Due
- Restrictions and Limited Rights
These things can lead to another person bringing a claim against your property.
Title Insurance Protects Against These Claims
This is where title insurance comes into play. When you get an owner’s policy of title insurance, your title company will protect you against any future claims that arise against your title to the property. If a claim arises and you are forced to fight the claim in court, your legal fees will be covered by your title company. This can save you a lot of money in the long run.
Commercial Title Insurance
Commercial Partners Title Company is known as the expert in commercial transactions in Minnesota and across the United States. Our team consists of title agents, closers, and underwriters who are ready and able to help you through each and every step of your commercial transaction. Contact us today to get started on your commercial real estate transaction. Our primary office is located in the heart of downtown Minneapolis. We also work with clients throughout the state of Minnesota and across the country.