Title insurance is a critical component in commercial real estate transactions, especially for professionals with significant assets. In Florida, understanding the nuances of title insurance can protect your investments and provide peace of mind.
What is title insurance?
Title insurance protects property buyers and lenders from financial loss due to defects in the title. Unlike other insurance types, which cover future events, title insurance protects against past title issues. The owner’s policy protects the buyer’s interests, ensuring they hold a clear title to the property. A lender’s policy protects the lender’s interests, ensuring their mortgage is secure.
Importance in commercial real estate
Commercial real estate transactions involve substantial investments, making title insurance vital. Title insurance covers undiscovered issues. Examples of this are fraud, forgery, undisclosed heirs, and clerical errors.
Title insurance also provides legal defense costs in case of disputes over the title and ensures compensation for financial losses if you discover a title defect after you complete your purchase.
Process of obtaining title insurance
Obtaining title insurance in Florida involves several steps:
- Title search: A thorough search of public records to identify any existing issues with the title.
- Title examination: Review of the title search results by an attorney or title company.
- Issuance of policy: Once any issues are resolved, the title insurance policy is issued, providing coverage for the buyer and lender.
Protect your commercial real estate investment
Title insurance protects you from personal liability related to complex commercial real estate transactions. Professional guidance can help you navigate how to best protect your investment in commercial real estate.