Title insurance protects the insured against covered title defects affecting the insured property. When you buy commercial property, you expect to enjoy important property rights as part of your investment. For example, you likely expect to be able to rent or lease the property, to be free from debts or obligations not created or agreed to by you, and to be able to freely sell your property or pledge it as security for a loan. Title insurance is designed to protect these important property rights. Here are seven reasons you should purchase an owner’s policy of title insurance on commercial property investment.
- Buying commercial property is a big investment
- The seller may not own the property or have the authority to sell it
- Warranties in your deed may not protect your ownership of the property
- The policy may cover more than just ownership
- A lender’s title policy does not cover you
- The high cost of claims
- Coverage for a non-time premium
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