When businesses are looking to relocate or buy new property, the first thing owners notice is the price. In addition to the price, you will see real estate taxes, commercial real estate insurance, commercial liability insurance, recording fees, repaid interest and title insurance fees. Indeed, costs alone can quickly rack up to 10% or more of additional costs. Other than real estate broker or realtor fees, the most expensive line item is likely Phoenix, Arizona, title insurance.
Title insurance?
Title insurance protects buyers from anyone else who may want to take possession of your property. Without it, you could find that competitors or the government could take your new office away and force your business to relocate yet again.
Title insurance claim?
But, what happens if someone does make a claim against your new business address. For example, this can happen if there was a prior unpaid mortgage that the title company missed in their property records search. The lender will obviously want you, as the new owner, to pay off that prior mortgage. And, if you do not have title insurance, the lender could foreclose on the property.
With title insurance though, you can file a Phoenix, Arizona, title insurance claim to resolve the title issue (quiet title). They would negotiate with the lender to resolve the issue, up to paying off the outstanding balance of that unpaid mortgage.
Boundary disputes
Unless you own an island, you will share at least one side of your land with another property owner, and sometimes, boundary disputes arise. These occur when you or the other owner encroach (violate) the boundaries of the other’s property. This issue is common with fencing, parking and sidewalks for businesses. For example, the prior owner built your parking lot partially on your neighbor’s property, and now, the owner wants you to demolish that part of your parking lot.
This is yet another example of when you would file a title insurance claim to resolve the issue. The insurance would negotiate with the neighbor on how to resolve the issue. It could be that they hire a contractor to modify your parking lot, or they could negotiate an easement to allow your parking lot to stay. The key, though, is that without Phoenix, Arizona, title insurance, you would have to fight these battles on your own.