Cost is at the top of most people’s minds when engaging in a commercial real estate transaction. When considering title insurance, many of our clients want to know who pays for title insurance. In this article, we are going to talk about who is responsible for paying for title insurance in a commercial transaction.
The Buyer’s Responsibility
In general, the buyer is responsible for purchasing title insurance for the property in question. However, it really depends on the negotiations between buyer and seller. Whatever is agreed upon between the buyer and seller should be written out in clear language in the contract so everyone is aware of who is paying for what.
States and counties also differ in how they handle this issue, so it’s important to know the customs of the location in which your transaction is taking place.
Lender’s Policy vs. Owner’s Policy
There is also an important distinction between the lender’s policy and the owner’s policy of title insurance. Lender’s title insurance is often required by the lender and protects their interests in the property. Owner’s title insurance protects the purchaser’s interest in the property. As such, it’s even more important to the buyer of the property.
Minneapolis Title Company
Commercial Partners Title Company is your go-to resource for commercial real estate transactions. Our staff of escrow agents, title closers, and more is ready and able to assist you through every step of your commercial title deal. Whether your property is located in Minnesota or another state, we are available to guide you through the draw process all the way through closing. We are recognized across the country as experts in commercial title insurance. It’s our commitment to excellence that we bring to the table when dealing with each and every one of our clients. Contact us today at our downtown Minneapolis office to get started.