What type of title insurance is required in a commercial real estate transaction?

In a commercial real estate transaction in Pennsylvania, title insurance is required to ensure that the property being purchased is free and clear of any liens or other encumbrances. Title insurance is a form of indemnity insurance that protects against loss or damage caused by problems with the title or ownership of the property. There are two types of title insurance that may be required in a commercial real estate transaction in Pennsylvania. The first is owner’s title insurance, which provides protection for the purchaser. It will pay for any losses or damages that result from a defect in the title that occurred prior to the purchase of the property. The second type of title insurance is lender’s title insurance, which covers the lender. This type of insurance covers any losses that may arise from a defect or encumbrance in the title that was not disclosed prior to the loan being issued. It is important to note that in order to obtain title insurance, a title search must be conducted in order to identify any issues with the title prior to the purchase. If any issues are found, they must be addressed and resolved prior to a policy of title insurance being issued.

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What type of title insurance is required in a commercial real estate transaction?

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