Florida has established itself as a hotspot for real estate investors. If you are interested in owning a piece of commercial real estate in the Sunshine State, however, it is important that you understand the legal intricacies that come with real estate transactions.
One of the most important components of the real estate purchase process is the title search. A proper title search can save you from legal disputes down the road.
So, what exactly is a title search?
At the very basic, this is an examination of the public records to determine the legal ownership of the commercial property you are about to purchase as well as any claims that have been filed against it. It involves scrutinizing the property’s ownership history to establish if their ownership records were properly documented.
Why you should complete a title search before closing on a commercial property
A thorough title search before closing a real estate transaction is a crucial step. An incomplete search can expose you to legal disputes or financial claims that can hurt your investment. By identifying active claims, liens and encumbrances on a property, you can ensure that the seller takes care of these issues before closing the transaction. Remember, Florida laws require the seller to provide a “marketable title” that is devoid of defects that can hinder your rights to the property after purchase.
If you are looking to invest in a commercial property, you want to be sure that the property you are investing your hard-earned money in has a clean title. A detailed title search is not only a legal requirement when investing in real estate, but it can also help you avoid unpleasant surprises down the road.