Title and Land Survey are two vital facets of due diligence that ensure a successful acquisition in the realm of commercial real estate. While many firms do not provide both title and survey services, it is crucial to understand the synergy between the title, survey and the client – which should be more of a Trifecta than a Bermuda Triangle when the right team is assembled.
The Title Commitment
The importance of the Title Insurance documents (Title Commitment and the documents noted as exceptions on the title) is that they insure the property buyer and/or lender against any title-search errors as well as loss due to disputes over property ownership. The Title Commitment shows all exceptions to title that are recorded against the subject property. These exceptions can range from tax liens to easements to judgments against the property or fee owner. The Commitment shows all the criteria the buyer and seller must comply with for the aqcuisition to close. Typical items include any existing mortgage that must be paid off, and any Deeds that must be recorded. A less common item that would need removal prior to closing would be a Mechanic's Lien; a lien placed on the property resulting from the failure of the current or past owner to pay a contractor for work in place.
read more...GlobeSt.com - Synergy Between Survey, Title and Client - The Science of Real Estate Article via GlobeSt.com
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