Having a title insurance policy for your commercial transaction is critical when it comes to protecting your business from unexpected claims.
You never know what lies ahead. Don’t miss out on the opportunity to purchase this coverage as you move through the settlement process.
Doing Your Due Diligence
Whether for investment purposes or to house their own operation, any business owner who has decided to purchase a commercial property should always do their due diligence before finalizing the transaction.
While you want to make sure everything lines up properly for the business itself, it is also imperative that you confirm the seller has legal authority to sell the property and that they can convey a clear title.
In other words, you may want to reconsider a property with a questionable chain of title or one that is bogged down with covenants, restrictions, and easements that may limit the ability to use it as you intend.
All of this can typically be discovered during the title search phase. This is when skilled title examiners will comb through all of the land records concerning the property so that Loudoun Commercial Title LLC can disclose matters affecting the title to you via a Title Commitment. This will enable you to determine whether you will be able to use the property for the uses you expect.
Unknown Risks
Unexpected claims often arise from title issues that weren’t discovered during the title search, based on issues not disclosed in the land records. And, unfortunately, they can show up when you least expect them. This can lead to a devastating loss if you are not protected.
Title issues that appear after you have taken ownership of the property can be due to many different things, such as improperly recorded deeds and mortgages, forged documents, title fraud, outstanding judgments and liens, and so much more.
Protecting Your Commercial Transactions with Title Insurance
Once the real estate transaction concludes, you become the rightful owner of the property. However, an unexpected claim could make those ownership rights a bit cloudy. Fighting for your property rights can go two ways —
One, you have invested in an Owner’s Policy of Title Insurance for your commercial transaction and have protection from the claim. You’d simply turn it over to the insurance provider who will handle it on your behalf. Or, two, you decided to forego title insurance and must face the battle on your own.
Depending on what the claim is, protecting your right to title can become time-consuming and costly. It is not uncommon for these disputes to become long, drawn-out legal cases, especially when it comes to high-value commercial property.
Sadly, without title insurance, there is no protection against a total financial loss. One claim has the potential to be disastrous.
Don’t put your investment at risk for unexpected claims. When purchasing a commercial property, make the extra investment in an Owner’s Policy that will give you the most coverage.
You may never need to use your Owner’s Policy. But should an unforeseen claim come to light, you can have confidence enough to move forward — business as usual.
Protect Your Business with Title Insurance
Being a successful business owner means making wise decisions. Investing in title insurance for your commercial transaction is one of them. Learn more about it from the experts at Loudoun Commercial Title, LLC.
Contact us today at (703) 737-3800.