Commercial title insurance is a policy that protects a buyer or lender against financial loss from defects, liens or ownership disputes in the title to a commercial property. Clopton Capital coordinates commercial title services nationwide through its title provider network, subject to availability and applicable state requirements, alongside commercial mortgage financing. Licensed title providers perform the title search and issue the policies.
| Task | Who handles it |
|---|---|
| Placing the title order and tracking it to closing | Clopton Capital |
| Coordinating title requirements with the lender | Clopton Capital |
| Searching public records for liens, defects and ownership issues | Licensed title provider |
| Clearing title defects before closing | Licensed title provider |
| Issuing the owner’s and lender’s policies | Licensed title provider |
| Holding escrow funds and recording documents | Licensed title provider |
Clopton Capital also arranges commercial bridge loans and commercial cash-out refinance loans for the same properties.
| Policy | What it protects |
|---|---|
| Owner’s policy | The buyer’s ownership interest in the property, for as long as the buyer or their heirs own it |
| Lender’s policy | The lender’s loan amount on the property; lenders usually require it for a commercial mortgage |
Commercial title insurance covers financial loss from title problems that existed before the policy date, such as unpaid liens, recording errors, forged documents or undisclosed ownership claims. It pays covered claims and legal defence costs up to the policy amount. It does not cover problems that start after closing.
Lenders usually require a lender’s policy on every commercial mortgage, so most financed purchases and refinances need one. An owner’s policy is optional, but it protects the buyer’s equity in the property, which the lender’s policy does not.
The cost of commercial title insurance is set for each transaction. It depends on the purchase price or loan amount, the state where the property sits, and the policies and endorsements needed. Clopton Capital provides a quote for each property on request.
An owner’s policy protects the buyer’s ownership interest for as long as they own the property. A lender’s policy protects only the lender’s loan and ends when the loan is repaid. Buying both at closing covers the owner and the lender.
A title search is a review of public records for a property to confirm who owns it and to find liens, judgments, easements or recording errors. The licensed title provider performs the search, and its findings appear in the title commitment issued before closing.
A title commitment is the title provider’s written promise to issue a policy once listed conditions are met. It shows the proposed policy amount, the current owner, the items that must be cleared before closing, and the items the policy will not cover.
Yes. Clopton Capital coordinates commercial title services alongside commercial mortgage financing, so the title order, the lender’s title requirements and the closing are handled in one place. Licensed title providers perform the search and issue the policies.
