Estimated reading time: 3 minutes
Introduction
Although the commercial property you just purchased is new to you, it has a history in public records. Sometimes, these histories can include unwanted baggage. Title searchers complete a search on the property during the real estate transaction’s closing process.This determines whether there are title defects that can have an effect on the purchase. One common title issue buyers face when is an error in public records. Humans aren’t error-free, and a clerical or filing error regarding your commercial property can have an effect on the deed. The result? It can cost you than you may have expected.
Title Search in Public Records
A title search is performed in order to determine if your property’s title is clear. This search can find any mistakes that could have been made in public records. For example, a description of the property that may appear to be accurate but isn’t is one such error. An incorrect statement of the square footage of the property or missing reservations, covenants and restrictions may be on the deed. If the actual legal characteristics of the property are different than what is listed on the documents, commercial buyers may run into issues with their neighboring property owners, among other problems.
Filing Issues with Commercial Properties
Improperly filed legal documents or mortgage releases can also result in additional headaches for the buyers.
Completely avoiding errors in public records is nearly impossible. Buyers of commercial property have no control over a property’s past or a mistake that could have been made by those filing and recording these documents. Not all errors can be detected prior to closing, too.
Owner’s Policy = Protection
However, an Owner’s Policy of title insurance will help protect your ownership rights from errors and defects found in public records. This insurance may cover both the legal costs to defend your interests as well as certain losses sustained as a result of a covered title defect.
Conclusion
Contact us for more information! We here at Landmark Abstract will help you with getting that owner’s policy with your settlement and are here to answer your questions.
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