Why You Need Commercial Title Insurance When Buying a New Property
If you intend to buy a commercial property, you'll want to ensure that your interests are protected at all times and will certainly be focused on insurance. While you will want a policy to cover the building and its fixtures against fire, weather and known risks, you may also want to consider other forms of commercial property insurance that may not be so obvious. For example, what do you need to know about commercial title insurance?
Protecting Your Title Rights
Commercial property title insurance is essentially an indemnity that will protect you against any unexpected issues related to your legal ownership.
For example, if it subsequently comes to your attention that building work was carried out in the past without the proper permit, you may be forced to repair or even demolish some parts of the structure to keep your local council happy. Without this type of insurance in place, you would end up footing the bill yourself.
If another structure encroaches onto your land and this work is performed without your knowledge or consent, you may be able to claim against this insurance to help you sort the matter out.
What if somebody were to claim a right of access to your land and insist that they have this form of easement? They may expect to get onto your property or even claim occupancy in some situations, and you may not have been aware that anyone had this type of legal right. While the matter may take some effort to unravel and could involve legal costs, you might be able to claim against your title insurance to help.
While it is always important to conduct due diligence before you buy any property, it may not always reveal any dark secrets. For example, a previous owner may not have paid certain taxes or rates or may still be liable for levies or other charges following your acquisition. As the new land owner, you are now responsible for settling those bills. Whether these hidden issues were due to an oversight or an error on the part of your conveyancing practitioner, you may want to turn to the insurance coverage for assistance.
Getting More Information
These are just a few ways that commercial title insurance can help when you buy a new property. Talk with your insurance agent about commercial property insurance, and they will provide you with additional details.