New and seasoned investors must grasp the importance and value of title insurance for commercial property when purchasing a new property. A solid investment strategy will always include it as a means of reducing risk while building a thriving portfolio.
Understanding Title Insurance for Commercial Property
Title insurance involves protecting your commercial property from a claim against the title, such as:
- Erroneously recorded legal documents
- Forged or fraudulent deeds, releases, or wills
- Missing or undisclosed heirs and spouses
- Deeds by minors or those of unsound minds
- Liens for unpaid taxes
- Judgments
This policy requires one premium payment at closing when you purchase the protection and then you are covered for as long as you own it. Your policy will go into effect as soon as you take ownership of the commercial property.
Mitigate Your Risk
As an investor, you know protecting a piece of commercial property is as important as protecting your entire portfolio. Since commercial real estate transactions come with a lot of potential risks, proper mitigation allows you to protect yourself and your investments.
Purchasing a title insurance policy is key.
While, of course, you want to do your due diligence before you put an offer in on a property to ensure that it is what you expect, the deep dive into its records and title can be even more important.
You want to confirm that the seller has the right to sell the property and that nothing is blocking your full rights and usage of it once you take possession. This means searching for any easements, encroachments, liens, judgments, litigation, bankruptcies, outstanding taxes, and more.
Any title issues that are missed or discovered later will be addressed by your title insurance policy, assuming you have one.
When you work with a licensed title insurance agent appointed by some of the nation’s largest and most secure title insurance underwriters, you can feel confident that should a claim ever be made, your underwriters will have the financial security and professional integrity to defend it and protect your interest.
That is how an investor mitigates risk when buying commercial property.
Maintain a Valid Title
Investors don’t always intend to hold onto properties long-term. For some, this may result in the inability to see the value of title insurance since it will soon be sold once again. However, purchasing a title insurance policy confirms that the title is valid and makes it more marketable.
Having title insurance gives you a record of all the due diligence that took place, starting with your legal ownership of the property as referenced in official records. Providing future investors with a copy of your owner’s policy gives them all the information needed for future transactions.
If you intend to sell your commercial property someday, having title insurance can make the next transaction go more smoothly.
Title Insurance At Loudoun Commercial Title, LLC
If you are an investor interested in commercial property, then understanding the importance of title insurance for commercial property is crucial. At Loudoun Commercial Title, LLC, we don’t just provide you with this necessary protection, but we take the time to answer your questions and address your concerns about it, too.
Contact us today to get started.