Chicago Title NCS Chicago: SYFCREC 2021

Surviving Your First Commercial Real Estate Closing I Title Commitments Title Insurance vs. Casualty Insurance Title Insurance o Protection against existing, undisclosed title defects and liens o Risks are minimized by searching and disclosure o Single premium , typically paid at closing o No defined policy term Casualty Insurance o Protection against possible future occurrences (e.g. car accident or medical costs) o Risks are individually ascertained and then spread among policyholders o Premium payments are paid on a periodic basis o Annual or semi-annual policy term 5 Surviving Your First Commercial Real Estate Closing I Title Commitments What is a Commitment? o Offer of Insurance o Terms on which the company is willing to issue the policy if the requirements are met o Used by the Owner/Borrower to provide evidence of title o Relied upon by the Buyer and Lender for the purpose of closing the transaction 6 5 6 6