Although every commercial real estate transaction is different, the role of the title company in commercial real estate transactions can be broken down into five main steps:
Ownership Liability – The initial obligation, also known as an ownership obligation, is the first step in providing insurance and initiating the process of finding property ownership. The commercial property rights obligations imposed by a commercial insurance company determine the terms of a property insurance policy.
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Ownership and Property Search – Before an insurance policy can be issued, the insurance agent must first create a "Title Summary". The executive summary provides important details about the history of land ownership and reveals attachments, foreclosures, record-keeping errors, or property disputes.
Escrow & Transaction Coordination Services – Agents work behind the scenes real estate transactions to coordinate and facilitate filing, paperwork, and financial transactions. They mediate between buyers, lenders, and sellers of real estate.
Closing Services – Closing services for commercial property closings are often provided by insurance agents, who usually carry out the closings at the agency's own office. Buyers, sellers, closing agents, and sometimes lenders, attend closings, which involve signing settlement papers, property insurance, property, and other documents.
Definitive Property Insurance – Once done, the parent company eventually offers an insurance policy to the buyer.
Property insurance covers the owner for the cost of legal protection if property rights are challenged in court; Commercial property insurance also guarantees compensation for financial or asset losses due to foreclosure or property disputes.