What is a title search in a commercial real estate transaction?

A title search in a commercial real estate transaction is an important step that helps ensure that the property is legally owned by the seller. This search will investigate the history of title ownership, and any possible encumbrances which could affect the property in the future. When a title search is conducted for a commercial real estate transaction, the title company will first review the chain of title. This means that the title search will look back to the original deed and examine the history of all transfers of title from the original owner to the current owner. The title search will then investigate any possible encumbrances that affect the title. Encumbrances could be anything from unpaid taxes to mortgages or easements. If any of these encumbrances exist, the title company will make sure that they are properly addressed before the purchase is completed. The title search is a critical step in the commercial real estate transaction process. It is important to make sure that the current seller is legally allowed to transfer the title to the buyer. A title search ensures that the seller holds the title, is responsible for any encumbrances, and that the buyer will receive clear title with no risk at the conclusion of the transaction.

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What is a title search in a commercial real estate transaction?

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