We talk about titles quite frequently on this blog, and rightfully so. The title acts as a legal right of ownership of a property, so securing a title will be a necessity if you intend to purchase a piece of property. All of this is mapped out in what’s known as a title chain.
A title chain, as the name suggests, is a historical record of all the previous owners of a piece of land. This chain can date back hundreds of years, but it should provide a clear picture of who owned the land and who acquired it next. It should be a continuous, unbroken record of ownership, painting a clear picture of a property’s history and who currently owns it. Sometimes this record is clean and simple, while other times it tells a pretty tumultuous story. The cleaner the chain, the better, because you want to ensure there are no ownership issues that could cause your sale to fall through or for past problems to come to a head during your ownership period.
Some of the most common title defects in regards to the title chain include:
-
Errors in the public record, like misspellings or incomplete entries
-
Unknown or unnamed heirs following the passing of a property owner
-
Former spouses still named on the title
-
Ownership disputes during probate or in regards to willed property
It’s imperative that you connect with a title services team like Commercial Partners to research a title chain prior to closing on a property. They can discover chain issues or other defects that could serve to cloud a title so that they can be resolved prior to closing. Moreover, following an investigation, we can offer a title insurance policy that provides protection in the event that any title issues were not discovered during the research period. Sometimes public records aren’t all that clear, and it’s impossible to know with 100 percent certainty that every title is completely free of defects, so that’s where a title insurance policy comes in.
A title insurance policy provides financial protection and other securities against a claim on your title. Regardless of whether or not the claim has merit, the insurance company will investigate the claim and protect your rights. This gives you peace of mind knowing that your asset is protected from bogus and valid title issues for as long as you own the property.
Sometimes title chains are clean, while other times they are quite messy. Let the team at Commercial Partners sort out the title chain long before closing so that any potential issues with a property can be rectified before you take over. For more information on how we can assist, or for help managing a different aspect of commercial real estate, connect with the team at Commercial Partners today at (612) 337-2470.