When many people hear “title insurance,” they think of it as it relates to buying and selling a residential property.
However, title insurance is key in commercial real estate transactions. Take a look at what you should know if you’re looking at commercial title insurance and how Investors Title works with our commercial clients.
How Do Commercial Properties Differ from Residential Properties?
Commercial property is different from residential property in a handful of ways. A residential property s generally a one-to-four family unit and can be used as a rental. A commercial property is essentially anything that is not a four-family piece of property and may include hotels, warehouses, apartment buildings and even farmland.
Typically, financial transactions for commercial real estate involve higher sums of money and are more intricate than their residential counterparts. Zoning regulations are also unique to a commercial property.
What separates commercial from residential policies are the endorsements that may be required. These are driven by the attorney and lender and are transaction-specific. We do refer to our underwriter when required to issue for approval.
What is Title Insurance for Commercial Real Estate?
Title insurance — regardless of whether it’s for residential or commercial transactions — protects the buyer from potential issues that can arise when taking ownership of a property’s title.
Title insurance plays a very important role in the buying and selling of commercial real estate
Because the amounts of money are substantially larger and the financial transaction are more intricate, title insurance can be very complex.
Who Handles Commercial Title Insurance?
Attorneys are almost always involved in commercial transactions as they can be very tedious and complicated. ITC works closely with attorneys, lenders and all parties to satisfy all title requirements for coverage under a buyer/owner’s title policy as well as a lender’s title policy.
In our experience, most attorneys and lenders require a national underwriter in matters of commercial title insurance.
What is the Process for Commercial Title Insurance?
Before Investors Title company can issue a commercial title policy, we conduct a title search during which we examine all recorded property transfers for the property in question.
The title search traces ownership, reviews liens and encumbrances (such as easements). Our title staff works to ensure we’ve identified the results of each of these liens and transfers. Next, we issue a preliminary commercial title report that the buyer and seller examine before a policy is issued.
Investors Title works hard to make sure you have exactly what you need from us, when you need it. Cyndi Deranja, Investors Title’s commercial closer, brings more than 25 years of experience and expertise to the commercial closing genre. In addition to Cyndi, our team of legal staff and underwriters are here to make the closing process streamlined for our clients.
At Investors Title Company, we have more than four decades of experience in both commercial and residential title transactions. We pride ourselves on our customer service. If you have any questions related to title insurance for commercial real estate, please contact us today.