When buying commercial real estate, there is no such thing as being too thorough. You must take everything into consideration because you are willing to invest a sizable sum of money. The location matters. Taxes matter. Both the property’s appearance and the cost of maintenance are important. The price matters most of all.

If any of the above doesn’t sit well with you, you might decide to back out of the deal or keep negotiating. Even if all of your boxes are checked, a title search is still necessary.

In particular, if you recently bought a house, you might be familiar with title searches. On the surface, title searches for commercial and residential properties are similar because they both aim to establish who owns the property. In a way, the process consists of three steps: the search, the report, and the insurance.

However, because commercial title searches involve businesses rather than individuals, they are much more complicated and involve a much larger number of documents. Your real estate purchase could succeed or fail based on the results of a commercial title search.

Here’s what you need to know.


The Importance of a Commercial Title Search

A commercial title search is crucial because, as with any purchase, you must be certain of what you’re getting. The stakes and risks are much higher when hundreds of thousands, and possibly millions, of dollars are at stake. The property’s past can ease your worries or give you an advantage in negotiations if the search turns up title problems.


How Do Commercial Title Searches Work?

A simple way to describe the process is that a commercial title search looks for both historical and current documents that have been recorded against a property, such as liens, mortgages, and easements.

In contrast to residential cases, commercial documents are indexed by name rather than by address. For various properties, businesses may have multiple documents, in addition to additional filings for things like employment and civil records.

The search is more challenging if that business changed names or filed its name inconsistently—remember, just because you couldn’t find a lien doesn’t make it invalid.

You must work with a reputable title company that is qualified and meticulous. Otherwise, your purchase could come with unnecessary risk.


How Can Real Title Services Help Your Title Insurance?

We can do a thorough investigation of the public records, and preset you or your title insurance agent with our finding. The outcomes of the commercial title search are effectively guaranteed by title insurance, which also provides ongoing protection for the parties involved.

In addition to title defects, the majority of policies also cover boundary disputes, environmental impact issues, and zoning conflicts. The policies come in two flavors: lender’s and owner’s, just like in residential title insurance.

In the event of a future title dispute, a lender’s policy safeguards the bank’s investment, whereas an owner’s policy safeguards the buyer.

The method for buying title insurance policies varies from location to location. But it’s frequently included in the closing costs.

Although the process from conducting a commercial title search to finalizing a real estate transaction may seem tedious and difficult, you’ll be glad it is. After all, running a business will be enough to worry about. Your title should not be one of those worries.



Are you looking for a reputable title search company to provide a title search for a property you’re interested in? Contact Real Title Services today to let us help you by expediently conducting a thorough investigation of the public records and presenting you with our findings.