Commercial and/or Industrial Real estate has traditionally been an entities most valuable asset. It is a form of wealth that is protected by many laws. These laws have been enacted to protect an entities’ ownership of real estate and the improvements located thereon. Owning entities have rights or claims in and to the property that they are buying. Those who may have an interest in or lien upon the property could be governmental bodies, contractors, lenders, judgment creditors, the Internal Revenue Service, or various other individuals or corporations. The commercial and/or industrial real estate may be sold to your entity without the knowledge of the party having a right or claim in and to the property. In addition, your entity may purchase the real estate without having any knowledge of these rights or claims. In either event, these rights or claims remain attached to the title to the property that your entity is buying until they are properly extinguished.
Generally, an entity thinks of insurance in terms of the payment of future loss due to the occurrence of some future event. Title insurance is a unique form of insurance. It provides coverage for future claims or future losses due to title defects, which are created by some prior event.
It is of utmost importance that you receive clear title to the property when you purchase commercial and/or industrial real estate. In order to do so, you must first be informed of any existing rights or claims that may, in the future, threaten your title and possession to the property. Title insurance provides you with this protection.
In order to determine the status of title, Paxin Closing and Escrow, LLC, conducts a diligent search of the public records for those documents associated with your commercial and/or industrial property. We then examine those recorded documents in order to determine if there are any rights or claims that may have an impact upon the title to the property. The title search may reveal the existence of recorded defects, liens or encumbrances upon the title such as unpaid taxes, unsatisfied mortgages, judgments and tax liens against the current or past owners, easements, restrictions and court actions. These recorded defects, liens and encumbrances are reported to you prior to your purchase of the property. Once reported, these matters can be accepted, resolved or extinguished prior to the closing of the transaction. In addition, you are protected against any loss or damage resulting from recorded defects, liens or encumbrances upon the title that are unreported to you and which are within the scope of coverage of the particular policy issued in the transaction.
The title to your commercial and/or industrial property could be seriously threatened or lost completely by “hidden risks.” “Hidden Risks” are those matters, rights or claims that are not shown by the public records and, therefore, are not discoverable by a search and examination of those public records. In order to protect you against this possibility, title insurance provides coverage for such claims.
Unlike other forms of insurance, the original premium is your only cost as long as your entity owns the property. There are no annual payments to keep your Title Insurance Policy in force.
If you have any questions, or need help with your insurance needs, please do not hesitate to contact Paxin Closing and Escrow, LLC, at 866-752-4445
