Commercial Title Insurance

Title Insurance Commercial Real Estate

Title insurance is one of the key pieces of any commercial real estate transaction. Without it, buyers and sellers would most likely find the risks of buying and selling property to be too high. Title insurance services have been around in one form or another in the United States since 1874. The stronger your understanding of what title insurance is and its role in commercial real estate transactions, the better prepared you are for negotiating great deals and protecting your assets.

Title Insurance for Your Commercial Real Estate Investment Protects Against

  • False or legitimate title claims 

  • Forged documents

  • Liens for unpaid taxes 

  • Mechanical liens

  • Judgments

  • Erroneous recordings 

  • Omissions in deeds

  • Encroachments

  •  Easements

  • Undisclosed heirs

  • Conflicting wills

While title insurance in residential real estate is often seen as a mere formality, title insurance is an integral part of both the due diligence phase and the closing process in commercial real estate deals. Because the stakes are so high in commercial real estate, all of the parties from the buyer and the seller to the lender or lenders have a vested interest in making sure the title insurance issuance goes smoothly.

Many commercial real estate transactions often consist of big-dollar transactions. If you intend to resell your commercial property in the future, having a title insurance policy makes you appear as a confident, trusted, and safe seller. 

 

Remember, title insurance doesn’t protect you from title issues that take place while you are the owner of the commercial real estate, but it instead protects against title issues in the past - before you took title - so that you don’t lose your rights to the property. 

If a lender is involved in the transaction, the buyer will almost always pay for the loan title insurance policy. The cost of the policy is often rolled into the cost of the loan. If there are multiple lenders, each lender will require their own policy.

The buyers will also want an owner’s title insurance policy. Sometimes the seller will pay for this policy as part of the closing costs. However, as a practical matter, the buyer is the one ultimately bearing the cost of the owner’s title insurance policy, as the seller will just add the cost into the purchase price.

The party who benefits from a title insurance policy will not necessarily be the same as the party who pays for the policy. While the buyer may be paying for the loan policies, if something goes wrong with the property, it will be the lenders that benefit from the policy, not the buyer.

American Guardian Title Provides a Comprehensive List of Services for Your Commercial Real Estate Transactions

We make it our goal to ensure that your commercial real estate transactions move smoothly, from contract to closing. While we do provide you title insurance, we don’t stop there. American Guardian Title will be with you throughout the process.

 

Need title insurance on commercial real estate? Contact American Guardian Title

 

We are experts at handling the title insurance needs of your commercial real estate transaction so that your investment is protected from the very start. If you have any questions about title insurance or about the steps in your commercial real estate transaction, then don’t hesitate to ask questions. We are committed to serving you. Call our office at (813) 331-8476 or (813) 331-3010.

 

Frequently Asked Questions