Glossary · Doing the deal
Title insurance
In short
An insurance policy protecting lenders and property owners against financial loss from defects in a property's title. If real estate is involved, this is crucial to ensure clear ownership.
What it means in a deal
If your acquisition includes commercial real estate, title insurance protects you and the lender from claims against the property's ownership. The lender will require a policy to ensure their lien position is clear. Budget for this closing cost and review the title commitment carefully.
Related terms
Common questions about Title insurance
- How does disability insurance complement life insurance for business protection?
- How does business overhead expense insurance differ from key-person life insurance?
- Why is long-term disability insurance considered a vital complement to business life insurance?
- When is term life insurance more suitable than permanent life insurance for business protection?
- Is a decreasing term life insurance policy acceptable for the SBA's life insurance requirement on a 7(a) loan?
- How are appropriate business life insurance coverage amounts calculated?
Defined by CapBench SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
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