Title Insurance for Commercial Real Estate? What exactly is it?
When commercial real estate is bought, sold or mortgaged, legal concerns connected to ownership or usage of the property in question frequently arise.
These problems have the potential to be divulged by the vendor, or they may be uncovered by the buyer or their consultants while carrying out due diligence.
From time to time, these matters are severe enough to create holdups or to terminate transactions completely.”
This Cover is most often sought when buying, selling or building commercial properties or when securing a mortgage or remortgaging.
- Transfers risks away: Key risks and losses are “committed‟ to the insurer, taking those risks and losses off your hands and giving you peace-of-mind.
- Assists with Negotiations: the policy can help to replace the need for detailed contractual indemnities or unnecessary conditions, helping to preserve commercial relationships between the parties.
- Provides a Practical Solution: remedying an identified risk can be a time-consuming process or may not be an option causing the transaction to breakdown entirely. Title insurance offers a practical solution, helping to smoothen transactions.
- Faster and More Cost-Effective: it offers faster implemented solutions rather than negotiating detailed contractual terms, saving time and costs for buyers, sellers and lenders.
- Removes the Need for Escrow: it can remove the need to hold money in escrow
There are often exclusions, deductibles and limits which apply, so contact an Avoca Insurance Broker to discuss your specific insurance needs.
