Commercial Closings Company2018-07-17T17:24:12+00:00

The Florida Commercial Closings Company

Florida commercial closings are a frequent occurrence in the State’s thriving economy. For better or worse, though, they are often more complicated than residential sales, there is often more money involved, and for these reasons and others, they can leave the parties involved feeling nervous and bewildered. With the help of our Florida commercial closings company the entire process can be easier and less stressful.

For example, Central and South Florida commercial closings often involve multiple contracts between multiple legal entities. The people/entities involved desire to limit their liability and commonly do so by creating such entities for the purpose of legally owning the real estate. Sometimes it is necessary to take special measures to assess the fitness of such corporations, Limited Liability Companies (LLCs) and Limited Liability Partnerships (LLPs) to enter into the sale.

Before title insurance is purchased for the commercial property you are selling/buying, a title company (True Title) searches these records to find – and remedy, if possible – several types of ownership issues. Its primary purposes are to eliminate mistrust and to increase accountability. No party to the transaction gets paid until everyone’s requirements are met, and at that point, everybody receives the money due to him/her. A variety of capital escrow sources adds another level of complexity to North and Central Florida commercial closings.

A competent title company (True Title) must be able to deal with these issues and handle many more tasks as well. One absolutely crucial step in Florida commercial closings is the procurement of title insurance. Our commercial closings company and our team of experts can help here as well!

Are you in the process of refinancing your current home? Do you need help with home title services? If you have any questions or needs, contact our Attorneys to find out how we can help you easily navigate the real estate purchasing/mortgage process and how we can provide you with the peace of mind you deserve. True Title is a company setting a standard of excellence industry-wide. We at True Title have been committed to excellence in customer service since 1998.

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Florida Commercial Closings: Title Insurance

What Is Title Insurance?

Title insurance is insurance that protects buyers and lenders against any irregularities with the title to a piece of property.  Title insurers defend against claims that arise and, if necessary, settle them in a way that does not cost the owner any money and leaves him/her still in possession of the property.

When a parcel of property is financed, bought or sold, a record of that transaction is generally recorded in public record archives of the county where the property is located. Likewise, records of other events that may affect the ownership of a property, like mortgages, judgments, liens or levies, are also archived in the same manner.

When you buy title insurance for your property, a title company (True Title) searches these records to find – and remedy, if possible – several types of ownership issues. First, True Title searches the public records to determine the property’s ownership status. Even though an Owner’s Title Insurance Policy is paid for only once, title insurance coverage will last as long as the owner owns the home so insured.

Even the most skilled title professionals may not find all problems associated with a property, though. Some risks, such as title issues due to filing errors, forgeries, or undisclosed heirs, are difficult to identify. So after True Title completes its title searching and examination duties, it also provides a title insurance policy that will help protect you from a variety of issues that might be uncovered later.

It is important to understand that there are two separate kinds of title insurance, and who the title insurer pays/indemnifies depends on who owns the policy and not who pays for the policy. A qualified commercial closings company can answer any questions you may have about this.

If you take out a mortgage loan when you purchase real estate, the lender will require a Loan Policy of title insurance. This protects and indemnifies the lender in the event that title defects are uncovered after the transaction is perfected and until the loan is paid off or refinanced.  If there are multiple lenders, they will each have their own Loan Policy.

An Owner’s Policy of title insurance insures and indemnifies the owner in the event that title defects are uncovered after the transaction is perfected.  Even though the owner will pay for the Owner’s Policy only once, title insurance coverage will last as long as the owner owns the home so insured.  A real estate purchase may be the largest financial investment you ever make, so when you buy an owner’s policy of title insurance, just think of it as buying some peace of mind!

Where Florida residential closings are concerned, securing title insurance is generally a straightforward matter, but because Florida commercial closings tend to be more complicated and can involve significantly more money, obtaining title insurance can be considerably more complex in a commercial transaction.

The Title Search

The first step in procuring title insurance for a commercial closing (or a residential one) is a title search. This is a search of public records in the Florida County where the commercial property is situated to ascertain whether there are any liens, claims or other encumbrances attached to the property that would interfere with a buyer’s ability to use or dispose of the property as he/she sees fit.

The title search produces a preliminary title report. If the report indicates that the seller owns the commercial property free and clear, then the sale can proceed without a hitch. If the report reflects issues with title (ownership), the seller, realtor and your Florida title insurance company – True Title – can work together to resolve them. If the title issues cannot be resolved, the Florida title insurance policy, if and when issued, will take account of the issues.  The buyer and seller both have the opportunity to review the title search report and to address its findings.

Florida Commercial Closings: Who Pays for Title Insurance?

Procuring title insurance is a monetary expense, and the parties involved in a Florida commercial closing will naturally be concerned with who is responsible for paying for the title insurance policy.

In residential agreements, the seller often pays for the title search and the Owner’s title insurance policy, although this varies from county to county and sometimes even within the same county. The party who pays these fees retains the right to choose the Florida title insurance company – True Title – and consequently, pays for the title company’s services. The buyer often pays for the Loan title insurance policy, any endorsements required by the lender, and possibly a closing administrative fee due to the lender, although these terms, like all terms in a contract, are subject to negotiation. In Florida, it is imperative to carefully examine the Contract for Sale and Purchase to determine which party pays the aforementioned fees and thus, retains the right to choose True Title as the escrow/closing agent

Florida Commercial Closings: Potential Benefits of Negotiation

In Florida commercial real estate transactions, negotiation is more common for a variety of reasons.  One such fee that is negotiated is the amount of the title insurance premium. A commercial property often costs significantly more than a residential one, and that means the title insurance premium will cost more, also, possibly enough to make it worthwhile to negotiate who pays the premium.

Another negotiable condition is the desire/right to choose the Florida title insurance company – True Title – to handle escrow and to close the transaction.  Typically, the right to do so belongs to the person who pays for the owner’s title insurance policy.  If one party believes the closing is likely to prove difficult for some reason, he/she may decide it is worth paying the premium to place the Florida title insurance company – True Title – of his/her choosing in charge of the transaction.

In some instances, you may be able to choose the Florida title insurance company while the other party pays the premium, and in fact, these terms are negotiated on occasion. When this happens, though, it is generally because the other party is unsophisticated about commercial closings or genuinely is not interested in who the title agent is.

In the case of refinancing and loan closings, where a borrower and lender are the only parties participating, the borrower has the right to choose the Florida title insurance company – True Title – although the lender often attempts to steer the borrower in the direction of the lender’s attorney or closing/title agent while the borrower pays the lender’s attorney/title fees and the Loan title insurance premium.

Professional Help From an Expert Commercial Closings Company

Whatever the specific circumstances, whether you are buying, selling, or refinancing a convenience store, apartment complex, factory, warehouse or other commercial property, the potential complications and complexities of Florida commercial closings are such that you will want knowledgeable professionals at True Title to protect your interests.  Give us a call now to get started with all of your commercial property questions and get professional help from the leading commercial closings company – (877) 785-8792.

Are you in the process of refinancing your current home? Do you need help with home title services? If you have any questions or needs, contact our Attorneys to find out how we can help you easily navigate the real estate purchasing/mortgage process and how we can provide you with the peace of mind you deserve. True Title is a company setting a standard of excellence industry-wide. We at True Title have been committed to excellence in customer service since 1998.

Contact Us