Among the key pieces of a commercial real estate transaction, title insurance is vital. Without it, buyers and sellers would generally see the risks of buying and selling property to be just too high. Title insurance has been available in the US since 1874, and has only grown in popularity. The stronger your understanding of title insurance and the role it plays in commercial real estate transactions, the more prepared you will be for negotiating great deals and protecting assets.
What is Title Insurance?
Title insurance is coverage which protects the buyer of a property from problems with the chain of title to that piece of real estate. This kind of insurance is used in both residential and commercial real estate transactions. Because the amounts of money are larger, financial transactions are more complicated, and title is often more complex, title insurance plays a significant role in the buying and selling of commercial real estate properties.