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What is a Title Policy and Why Is it Important?

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A title policy is a critical component of doing business in the commercial real estate world, and something that all commercial brokers should be familiar with inside and out. A title policy is also known as title insurance and its importance, regardless of what you call it or the variant of words assigned to its description, is something that can’t be understated.

Commercial Property Buyers and Title Insurance

Title insurance is especially important for commercial property buyers, because it protects them from the unlikely yet all too feasible scenario that their purchase of a particular piece of real estate could be challenged by someone else also claiming ownership. Here’s a perfect example: a corporation buys a piece of commercial real estate from a landlord with the intent of moving in and conducting business, only to be thwarted after the money’s changed hands by the claims of yet another party with proof to show that they legally bought the same piece of property at an earlier time. Needless to say, having someone show up waving ownership papers can put something of a crimp in the assumption of business for a corporation – not to mention serious financial issues. A title policy also protects a buyer from the discovery of existing tax liens on a property, non-disclosed restrictions on the property’s use, mistakes in the public recording of the exchange of ownership, and even fraud and forgery. The title insurance policy covers the purchaser for up to the amount that the property was purchased for.

Lenders and Title Insurance

Another type of title policy is one that offers coverage to the bank or lender that’s financing the purchase of a piece of property. This gives the lender legal protection against the same risks, and stays attached to the loan in the event the property is sold again to another party.

Commercial Real Estate Brokers and Title Insurance

It’s not often that a commercial real estate broker encounters the need to exercise a title insurance policy, but just because it’s not an everyday occurrence doesn’t mean that there’s not a very real chance of this kind of mess materializing in time to lay waste to all of the due diligence and hard work put in by all involved. For this reason, title insurance isn’t just a benefit for buyers and lenders, but for commercial real estate brokers as well.

Real estate transactions can be fraught with frustration and pitfalls.

Sometimes the hardest part turns out to be working with your broker, the person who is supposed to help you through the complexities. Veteran commercial real estate broker and client advisor John Culbertson discovered that brokers’ interests aren’t always aligned with those of their clients. He realized there was a better way to advocate for clients and get the deal done.

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We’re grateful for our clients. They are extraordinary leaders who have achieved tremendous results. When we think about the companies and people we are fortunate to work with, we are blown away.

Jay Faison
Former President, WirePath and ZoboTV

John and his team were exceptional advocates on our behalf. Their team approach makes sense, and it yielded an excellent value for my company.

Bob Spencer
Senior Vice President, RBC Bank

I got to know John while serving on a state board and observed him be one of very high integrity and commitment to his clients. His approach to serving clients in the real estate business is unique and results-focused. I have no hesitation recommending him to any of my clients. I know he is a true professional and an expert in his field. He understands partnering like no one else!

Lee Roberts
Former Managing Director Piedmont Community Bank Holdings

Truth is, we can easily find real estate that is available in SouthPark. But Cardinal called the landlord of one of our competitors and helped us make a deal for an awesome Charlotte branch. I am extraordinarily pleased with the engagement in every possible dimension.

Ronnie Bryant
Former CEO, Charlotte Regional Partnership

Working with a smaller shop gets you more personal attention. I got the top guy’s attention. You don’t get that with a large organization where sometimes you end up with junior people doing the work. John is detailed; he’s professional, he’s aggressive, and not in a negative way, but in terms of wanting to get it right. He’s tenacious. He would be my No. 1 choice for any real estate deal. I know what to expect. He’s a good guy, and over the years, he's become a good friend, too.

Stephen Pandos
Director of Finance, Insite Properties

Few people have a Rolodex like John. He's about the most networked person I know and people take his call. He has deep contacts with all the major players, both locally and around the region. As a result of John's introductions, we have found several exceptional deals and developed some valuable relationships. You can't put a price tag on this type of access and speed of trust.

Stephen Pandos
Director of Finance, Insite Properties

John has a high tolerance for the mental pain it takes to solve a complex problem. Frankly, his peers in the brokerage industry just don’t have it. I think John’s experience as an operator, investor, developer, and broker gives him a unique perspective when looking at opportunities. His vision, his ability to think forward, is unique in his profession. His ability to see the bigger picture and what the future looks like on opportunities is remarkable. He also is networked - he has deep contacts with all the major players, both locally and around the region. John’s network has opened doors for us. People take his call.

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