Discussion of title insurance and its importance in a commercial real estate transaction, or any real estate transaction is not commonly known especially to those firs time buyers. However, buyers should realize that it plays a key role in any commercial real estate transaction, for it protects their interest as a buyer.
In order to have better understanding of its importance, it would be good to know what title insurance truly is. According to propertymetrics, title insurance "protects the buyer from any problems with the chain of title to a piece of real estate. Title insurance is used in both residential and commercial real estate transactions. Because the amounts of money are bigger, financial transactions are more intricate, and title is often more complicated, title insurance plays a vital role in the buying and selling of commercial real estate."
Now the question is how can this form of insurance be of service to you as a buyer? Title insurance would be of great help whenever there would be some issues stemming from rights of ownership. If a seller for example claims that the property's title is full and clean, but later on a third party would claim that they actually have the rights to the property and not the seller whom you have come in contact with, then the title insurance will protect your rights as a buyer.
Though policies may have some differences, still title insurance will cover the legal fees if ever a legal battle would come around. Aside from keeping the rights of buyers, title insurance would also serve as leverage when dealing with lenders. And for sellers, title insurance would also benefit them, for it creates a deeper sense of trust. There are many things that should be known about title insurance. And this article serves only as starting reference for further consultation and research. It would always be better to contact real estate consultants and agents for more professional and personalized advice.
