Birmingham, AL · Member since 2020 · 2 posts · 1 vote
Hi everyone,
I have a legal question around title insurance. We are looking to buy a portfolio of 10 properties that the seller owns in an LLC by simply buying the LLC.
The seller has title insurance on all properties in the name of the LLC. What happens to the title insurance when we take over? Do we continue to be covered or do we need to get new title insurance?
I'm not an attorney and this isn't legal advice. It's my opinion based on working in the title insurance industry for several years. In general I believe the LLC is the Insured of the policy and not the GP or LPs therefore the coverage should continue. However, there are several endorsements to the policy that you might want to consider depending on the specifics of your transaction so I suggest you consult with a good real estate attorney who is familiar with title insurance coverage.