Throughout my 20 plus years in the title industry, and despite having handled many multi-million dollar commercial transactions, I have only seen 20 or so leasehold policies issued.
Prospective tenants may execute a lease for a term of many years and make significant leasehold improvements to the property without having title to the premises examined or purchasing title insurance.
A title search and the subsequent issuance of a leasehold policy will answer questions, disclose any issues to the title, and afford protection for such things as:
Is the consent of a mortgagee (lender) needed to lease the premises?
Will the tenant’s possession of the premises be at risk due to a foreclosure of a mortgage, liens, non-payment of taxes or other issues?
Is the Landlord named in the lease the correct name or entity name as appears of record?
Are the leased premises subject to any covenants, restrictions, or easements that may limit development or use?
Note: No legal advice or suggestions are being given.
If you feel you do not receive value in our tips, please feel free to unsubscribe at:firstname.lastname@example.org