April 27, 2018
2018 How to Guide
How to Select the Right Commercial Title Company
By Belinda Rosthenhausler
Commercial real estate transactions can often involve complex details and many interested parties. Selecting the right title company to close an escrow is an important piece of the commercial real estate landscape. Here are the most important things to consider when selecting a title company.
What is title insurance?
Title insurance plays an integral role in the closing process of a commercial real estate transaction. In the instance that a covered title defect arises, title insurance provides certain protections for the policy holder. The real value of title insurance is the financial assurances that are provided in satisfying claims while absorbing the expense of defending such claims.
“By choosing the right title company to coordinate and manage the closing for all parties involved, clients are left with the peace-of-mind that they are being provided with a clear title.”
Why is it important and what could go wrong?
Every commercial transaction has its own history. The title history needs to be reviewed for potential risks which should be uncovered prior to closing each transaction. Some of the most common title claims can be overlooked or ignored. These can include human error involving public records, probate issues, undisclosed liens or encumbrances, encroachments of fences or buildings, and fraud – just to name a few. Closing a transaction without the right title insurance policy could be financially devastating and could lead to expensive litigation.
Customer service is No. 1 in closing the transaction
Exceptional customer service and knowledge should be a key factor in choosing a team to handle commercial property transaction.
An exceptional team takes pride in ensuring that each transaction is handled with an eye for detail. An exceptionally crafted team provides top-tier commercial service with the utmost integrity. They take special care to avoid obstacles in the transaction process. Your commercial team must be comprised of the right personnel, including vast commercial expertise to deliver a smooth and successful closing.
Experience in the local market
Intimate knowledge of the local market and market conditions is the hallmark of an experience commercial title company. Each relationship with local market leaders, developers, lenders, attorneys, and other key stakeholders is earned one closing at a time. A good commercial title company is vested in the community and has the pulse of what is currently happening in an ever-changing market. A great team possesses years of experience and a concrete foundation of local industry knowledge. These elements are crucial to closing a transaction that exceeds client expectations.
The strength of an underwriter
Financial strength is a key factor for any major title insurance underwriter. They must have the financial resources to pay any potential title insurance claim. Risk evaluation and mitigation is also a key factor in evaluating the strength of an underwriter. Underwriters who have the ability to evaluate each transaction based on its own merits will eliminate unnecessary underwriting delays.
No detail is too small.
So…don’t skip the details
By choosing the right title company to coordinate and manage the closing for all parties involved, clients are left with the peace-of-mind that they are being provided with a clear title.