While the types of property involved in commercial versus residential real estate sales transactions can vary greatly, they share a critical commonality: both are safer when title insurance is purchased. Regardless of the type of property, buyers need to protect themselves and their property rights.
Title insurance critical for commercial properties
For both residential and commercial property buyers, title insurance is an important, even essential, purchase to ensure they’re able to use the property as they intend. So whether you want to put up a fence in the backyard of your dream home or expand your commercial property on the accompanying land you purchased, knowing you have the right to perform these tasks is important. But when the property is larger and the investment higher, so are the stakes, making title insurance for commercial property just as, if not more, critical as it is for a residential purchase. Either way, a property’s history is often complex, and you never truly know what defects could exist in a property title—that is, until you have a title search completed by your title insurance company.
Commercial property needs same title insurance protection as residential property
Like title insurance for residential property, commercial property title insurance protects purchasers from title defects, such as liens and encumbrances, fraud and forgery, unpaid taxes and mortgages and errors made in public records. It’s an important protection for a property that could be key to your business’s financial success.
Commercial property title insurance can be just as, or more, complex than residential title insurance
As commercial property buyers move to protect their investments, it’s critical to know that there may be exceptions specific to a property itself such as easements and rights of way issues, zoning violations from previous owners or perhaps violations of building or environmental regulations. Commercial property owners may want to explore addressing these matters by extending their coverage.
Commercial property title insurance: protecting your investment
When you’re considering purchasing commercial property, don’t forget the title insurance to provide protection for you, your investment and your business.