People are investing more in commercial real estate than ever. In such a booming market, the importance of having commercial title insurance can’t be underestimated. It increases the importance of having commercial title insurance so owners can keep track of their property and ensure the title is clean and protected.
How can you be sure the seller is honest when you buy a property? It’s possible there are liens or easements, or they don’t have the right to sell the property. This blog by Hoegen & Associates breaks down what commercial title insurance is, why it’s important, and how to get it. Hoegen & Associates proudly serves Wilkes-Barre, PA, and beyond with commercial, construction, and real estate law. Contact our office today to get started!
What is Commercial Title Insurance?
A deed transfers the title of a property from the seller to the buyer, but commercial title insurance protects you if there are outstanding liens or problems associated with the property. Buying a property with a flawed title can be a nightmare, especially financially. Title insurance provides peace of mind and assures the new owner that they have the right to their piece of property and will protect them financially if something happens down the road.
Why Is Commercial Title Insurance Important?
Commercial title insurance protects you from issues involving the property’s title in the future if any. If someone claims to be the property owner, your insurance will help cover any legal fees to defend yourself in the claim. If the person is insistent and demands the property back, you may lose the property and thousands of dollars in legal fees if you don’t have title insurance. You have insurance to protect many other investments in your life. Insuring the title of your commercial property is just as important.
Most Common Unknown Title Issues
After a sale contract is completed, a title professional will check the public records to ensure the property’s title is clean. However, some instances will not appear on the title search, which could wreak havoc on the new buyer. Commercial title insurance, specifically an Owners Policy, will protect you financially if any of these happen to you.
Fraud and forgery are often an issue that goes undetected and can cause serious problems after the sale of the property.
If the past owner is deceased, there could be conflicts over the will by the surviving members, such as the timing of the deed, probate issues, and more.
Heirs that have been out of the picture for years sometimes show up and challenge a title to restore it to their name.
How to Get Commercial Title Insurance
It’s a good idea to have commercial title insurance when you purchase a property to protect yourself from any possible issues. The attorneys at Hoegen Law are experts in commercial real estate and title insurance. When you are preparing to buy commercial property in Pennsylvania, contact us. We will help you navigate the commercial real estate landscape and ensure you and your investment are well protected.
Call us today (click to call, 570-820-3332) to discuss your commercial real estate intentions.