Commercial Division

Real estate titles are composed of a “chain” of documents connected to the property. During the title examination process, we review the ownership history for the past 60 years, ensuring each owner has properly transferred their interest to the next, eliminating any lingering claims. While it can seem complex, this is where commercial title insurance becomes invaluable, safeguarding your investment by protecting against claims from previous owners in the chain.

Closing costs can vary but typically include title insurance premiums, search fees, settlement or escrow fees, and recording fees. Eagle Title can provide a detailed breakdown of these costs before closing.

Title issues can throw a wrench in your ownership rights. Things like liens, which could pop up due to unpaid taxes or contractors’ fees, can stake a legal claim to your property. You might also face encumbrances and restrictions on using your property stemming from easements or zoning laws. Lastly, watch out for errors— any mistakes or fraud in public records could spell disaster.

Loan policies: A title issue can threaten the priority of the lender’s lien on the real estate. The lender’s policy ensures that, regardless of the title issue, their deed of trust is first in line to get paid in the event of foreclosure or a failure of title. It’s part of the deal, and the borrower pays it at closing.

Owner’s policies: Like the lender’s policy, the owner’s policy assures you, the new owner, that your ownership stake in the property is protected. Think of it as title assurance for the owner. If a title issue comes to light after closing and threatens your ownership, this policy is your shield. It’s optional, but the smart money is on getting it for maximum protection. The premium cost can be negotiated with the seller as part of their contribution to closing costs, and once purchased, it is in effect for as long as you own the property and can even be called on after you sell. It’s one time, one premium, and gives you forever coverage on any pre-ownership issue.

Title insurance reduces the risk of losing your property or paying for someone else’s lien that could hit you after closing. Plus, it covers your legal costs if you’re defending a title claim. It sets you up with the confidence that you have a clean, marketable title when it comes time to sell the property.

Title insurance protects against potential issues or defects with the title of a property that could affect your ownership rights. These issues could include unpaid taxes, liens, undisclosed heirs, or fraudulent transactions in the property’s history. Having title insurance ensures you are protected from financial loss in case such problems arise.

Common issues can include unpaid taxes or liens, boundary disputes, easements that affect the property, unresolved judgments, fraudulent deeds, or prior ownership disputes. These need to be resolved before closing the transaction to ensure clean title transfer.

Yes, Eagle Title is experienced in handling 1031 exchanges. A 1031 exchange allows property investors to defer paying capital gains taxes by reinvesting the proceeds from the sale of a commercial property into another qualifying property.

• Both an Owner’s Policy and a Loan Policy are suggested by the  American Bar Association. A lender’s policy is required by all banks loaning money on real estate. The owner’s policy is your option for insuring your ownership.
• Relevant endorsements related to covenants and restrictions, environmental coverage, zoning, survey matters, tax parcels, and access.
• Matters of loss determination and taxes.
• Special uses under the locality’s zoning ordinances.
• Mechanic’s lien coverage for new construction projects and unusual loan document covenants that may include aggregation, swaps, or variable rates.