Each available title insurance endorsement has its own benefits and uses. In this article, we are going to explain the benefits of the doing business endorsement and when it can be used in title insurance underwriting.
The ALTA Doing Business Endorsement
The ALTA doing business endorsement insures that a mortgage lien will not be determined to be unenforceable on the basis that the making of the mortgage constituted a violation of the “doing business” law of the State in which the property is located. The laws of the state should be reviewed to determine whether or not the act of lending money in exchange for receiving a mortgage requires the lender to be authorized to do business within that state. This endorsement is available in Minnesota because Minn. Stat. Sect. 303.03 makes it clear that a foreign corporation owning property and making mortgages does not constitute “doing business”
The doing business endorsement is available in a lender’s title policy but not an owner’s title policy.
Consult Commercial Partners Title Company on Your Next Transaction
Consult with an experienced title company on your next commercial transaction. At Commercial Partners Title Company, our team has a combined 200 years of experience facilitating title transactions for all sorts of commercial properties. We have the knowledge and skills to ensure your transaction is a success from start to finish. Put your trust in our expert title closers, escrow agents, and underwriters. You can set up a time to chat by contacting us at our downtown Minneapolis office today. We provide commercial title services to clients throughout the United States.