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

A title search in a commercial real estate transaction is the process of examining the title records of a property to determine its legal status and ownership. This helps to protect the parties involved in the transaction by ensuring that all outstanding liens, mortgages, or judgments against the property are addressed before the sale is completed. The title search is typically conducted by a title insurance company or closing attorney, and the results of the search are used to create a title report or title opinion. The title report or title opinion will be used to provide the buyer with a comprehensive overview of the property’s legal title and ownership, as well as any liens or judgments against the property. The title report also often includes information about the boundary lines of the property, as well as any restrictions on the property. In some circumstances, the title search may also uncover other potential issues, such as access rights, easements, zoning laws, or other government regulations. In Florida, title searches are conducted through the Department of State’s Division of Corporations; however, other state or local agencies may also be involved in the search. Title searches are important components of a commercial real estate transaction, as they help to protect both the buyer and seller from future potential problems or legal disputes.

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

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