Title insurance is an essential part of almost all real estate transactions. If you are planning to buy or sell real estate in the near future, scheduling a consultation with a Katy small business attorney can be a solid step toward ensuring that these transactions go smoothly and that you are financially protected throughout the entire process. Here are some of the most common risks involved in failing to obtain title insurance for all your commercial property acquisitions.
Financial Interests in the Property
In some cases, other individuals may have inheritance or investment rights to the property you are considering. Determining whether the land and buildings you want to buy are free and clear of financial interests that could jeopardize your ownership of the property now or in the future can be established by performing a title search.
Recorded Liens and Encumbrances
Liens can be filed against properties for nonpayment of contractors, outstanding property taxes and for other debts incurred by previous owners of the property. An unpaid mortgage can represent an encumbrance that must be paid before the property can be sold. These issues can prove costly if not identified prior to your acquisition of the commercial property.
Easements on Land
Easements are rights to pass over the property of another individual to provide access to areas that might otherwise be blocked in. Easements can confer rights to other people or businesses or can restrict the use of the property to protect the rights of surrounding landowners.
Violations of City Codes
If the property under consideration has received citations for violations of city or subdivision codes or restrictions, you may be required to remedy these problems before you can make full use of the buildings and land. Working with a firm that specializes in Sugar Land real estate law to acquire title insurance and do a thorough check on the title history can help you to make the best choice for your business acquisition.
Forgery or Fraud
Title insurance can also protect you financially if forgery or fraud are committed during your real estate transaction. The checks performed by title insurance companies can often identify these issues early in the process. If fraud does occur, title insurance payouts will usually cover at least a portion of the costs incurred to straighten out the problem.
The Law Firm of Henry A. Jakob offers the most comprehensive Katy estate planning and real estate law services in the metropolitan area. Our Katy small business attorney team specializes in providing support for businesses large and small in acquiring new properties, managing contract documents and handling all aspects of the legal process. Call us today at 832-879-2244 to set up your first consultation. We look forward to the opportunity to serve you.