When you purchase a property with a mortgage, the money lenders insist on title insurance that covers them if a problem with the deed or title arises down the road and a challenge is launched over the ownership of the property.
So, should commercial property buyers also purchase owner’s title insurance?
Owners’ title insurance protects buyers, too
Commercial property purchases typically are investments for the buyers. They sink money, time and resources into getting their business off the ground. Imagine having to suspend operations at that same business because someone got an injunction against the property due to problems with its title. It would be an utter disaster.
Paying that one-time fee for the owners’ title insurance protects the buyer from future claims that could impede the operation of their business. It’s an investment that could spare owners an untold amount of trouble and money.
Not all title irregularities are revealed immediately
Before issuing title insurance, industry professionals conduct a review of the title and all transactions connected to it. Title defects that do not emerge during the title search but threaten your ownership later will be covered by this prudent one-time purchase.
Don’t gamble with your company’s future
When you embark on a commercial venture, you have no guarantee of success. However, there are ways that you can tip the scales a bit in your favor. Taking the time and effort to purchase title insurance that covers your investment is the first step toward your company’s success.
If you feel that you are in over your head, it is typically helpful to learn more about the New Jersey real estate laws that govern your purchase.
