When people think of title insurance, the first thing that often comes to mind is title insurance for the home, but title insurance for commercial properties is just as – if not more important than – title insurance for residential properties. The financial stakes in commercial transactions are high, and investors should do everything in their power to mitigate risks. One of the easiest ways to do so is to invest in commercial title insurance.
Common Issues that Tarnish Commercial Titles
The purpose of title insurance is to protect investors from unknown issues with the commercial property’s title. If you aren’t protected by title insurance, old problems can become your problems and you could ultimately face the consequences. Moreover, commercial properties can be more susceptible to title issues because ownership often changes hands more frequently than residential real estate transactions. There are also more “hands” in each given transaction. Often commercial properties are owned by a corporate entity or several individuals. This type of ownership structure creates an environment ripe for unresolved ownership claims to emerge down the road.
Common title issues that can impact commercial property include:
- Outstanding property taxes
- Mechanic’s liens
- Survey or zoning issues
- Code violations
- Title issues, defects or errors
By working with an experienced real estate attorney and title company, many open issues will be discovered when they undergo due diligence and the title search, but there’s always a chance for unknown issues to arise. With a one-time commercial title insurance premium payment, you’ll also be protected from any unresolved ownership claims for as long as you own the property.
Commercial real estate transactions are highly complex. You’ll want a real estate attorney at your side to ensure your rights and interests are protected throughout the entire negotiation and transaction process. Our team at the Law Offices of Alex D. Sirulnik, P.A. and ADS Title Services, Inc. are with you every step of the way. From due diligence to contract negotiation and closing, we’ll help you secure the best deal on your Miami commercial property. Contact us today to request a free consultation.