Lara Farasat, Esq.

08/06/2026

Buying commercial property? Let's talk about title insurance.

I consider myself a title review nerd.

Without guidance, many buyers believe that a preliminary title report is a fixed document that simply tells you what title insurance will or will not cover.

False.

A preliminary title report is the beginning of a conversation with the title company. Many of its provisions are negotiable, and a careful title review can significantly improve a buyer's coverage and reduce risk.

I don't just negotiate the form of policy or the exceptions to coverage.

Even items as fundamental as the legal description of the property to be insured may be modified under certain circumstances. For example, if an easement is critical to the buyer's use of or access to the property, that easement should likely be a listed as a parcel on the legal description of the property to be insured.

Every property is different, and every title review is unique. Accepting a preliminary title report at face value can mean leaving valuable protections on the table, or worse, glossing over serious costs or restrictions.

I approach each title review like a unique puzzle to be put together one piece at a time until a clear picture emerges.

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08/06/2026

Check out my post on title review for commercial purchase transactions:

Buying commercial property? Let's talk about title insurance. I consider myself a title review nerd. Without guidance, many buyers believe that a preliminary title report is a fixed document that simply tells you what title insurance will or will not cover. False. A preliminary title report is the b...

04/21/2026

Whether you are buying or selling commercial property, title insurance must be handled with care to avoid delays in closing or worse.

I’ve reviewed title and survey on commercial transactions since 2002. I've seen the same pattern: buyers assume title is clean, sellers believe title is a formality, and surprises come under time pressure. In fact, title review is a critical way to uncover data and minimize risk at acquisition and set up for a smooth closing at disposition.

With over 20 years of title review experience, I've seen most issues that can pop up, but a few common ones are:

1. CC&Rs and use restrictions. Limitations that affect leasing, redevelopment, or even basic operations — often overlooked until late in the process.

2. Easements that don’t match actual use. Access, parking, or utility rights that are unclear, incomplete, or conflict with how the property operates today.

3. Encroachments (onto the property in question or onto the neighboring property) that may constitute red flags and/or may be ensured over.

4. Old deeds of trust that were paid off but never reconveyed. The loan is gone, but the lien is still on record.

4. Breaks in the chain of title or inconsistencies in the legal description of the property over time. Transfers through entities or estates where a grantee, grantor or one of the parcels of the legal description were improperly recorded.

The form of a title policy, the exceptions to title and the extent of title insurance coverage are all negotiable with the right expertise. If you’re buying or selling commercial property, don’t settle for what is set out on the preliminary title report. Investing in careful title review upfront can save significant time, cost, and disruption later.

What’s the most unexpected title issue you’ve seen come up in a deal?

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Whether you are buying or selling commercial property, title insurance must be handled with care to avoid delays in closing or worse. I’ve reviewed title and survey on commercial transactions since 2002. I've seen the same pattern: buyers assume title is clean, sellers believe title is a formality...