What Can Go Wrong Without Title Insurance in a Commercial Property Deal?

Imagine purchasing an office building or retail space in Pennsylvania—maybe in Waynesboro or Chambersburg—only to later discover someone argues they still own part of the land. Without proper title insurance in Pennsylvania, commercial property owners risk losing millions due to hidden problems.

Hidden Title Hazards in Pennsylvania Commercial Real Estate

Commercial deals mask complex title risks:

• Unexpected boundary disputes

• Forged documents

• Errors in public records

These issues often appear only after closing, when the developer or new owner discovers clouds on their title.

The High Stakes of Commercial Transactions

In commercial transactions in Pennsylvania, the stakes are especially high. One misfiled deed or missed easement can delay use of the property, trigger legal disputes, or even strip ownership rights.

Title insurance provides peace of mind, but only when it's obtained from the right local partner with deep knowledge in Pennsylvania commercial real estate. Here are real examples of what can go wrong and why insurance matters:

1. Boundary Disputes

Picture buying a warehouse in Chambersburg only to learn that an adjacent property owner claims a disputed strip of land. Without coverage, you’re on the hook to resolve it—or lose acreage.

2. Forged or Fraudulent Deeds

A forged signature can transfer property without legal rights. When caught years later, buyers might face court battles, or eviction, unless backed by a title insurance policy for commercial deals.

3. Public Record Errors

Downtown properties often suffer from recording mistakes—wrong legal descriptions, missing owner names, or liens that weren’t released. Without a title policy, investors can be stuck fighting claimants.

4. Undisclosed Easements or Rights‑of‑Way

What if a utility easement wasn’t disclosed and cuts through your parking lot? That can cripple development plans and reduce property value, unless you're insured.

5. Unknown Heirs of Previous Owners

Someone may inherit a claim through a faulty will or unrecorded transfer. If an heir surfaces after closing, they could jeopardize your rights to the property.

6. Verify All Prior Ownership Transfers

Review the full chain of title to ensure every transfer of ownership was legitimate. In regions like Waynesboro or Chambersburg, older commercial properties may have long histories, making errors or forged transfers more likely.

7. Watch for Environmental or Zoning Restrictions

Even if the title is clean, past land use violations or zoning restrictions can impact how your commercial property is used. A title insurance policy can uncover and help resolve such issues.

8. Order a Survey and Compare to Legal Description

Before closing, request a property survey and compare it with the legal description in the deed. Mismatches in property lines are a common cause of disputes.

9. Check for Unreleased Mortgages or Liens

It’s not uncommon for old mortgages, HELOCs, or contractor liens to still be recorded, especially with older commercial buildings. A detailed lien and title search in Pennsylvania helps protect against these oversights.

10. Use a Local Title Company You Can Talk To

Working with a local title company in Waynesboro or Chambersburg, like Buchanan Settlement Services, means you'll have support from agents who understand regional property laws, county records, and local risk factors.

Don’t leave your commercial investment to chance. Buchanan Settlement Services is a trusted Pennsylvania title insurance company, serving clients across Waynesboro and Chambersburg with secure, attorney-reviewed closings.

Here’s how we help:

• Comprehensive title insurance in Pennsylvania

• Targeted searches for boundary disputes, document fraud, and record errors

• Coverage for liens, easements, heirs, and unforeseen title defects

• Seamless coordination with lenders and escrow partners

📞 Call Buchanan Settlement Services today at (717) 762-1415 or contact us here

🏢 Offices in Waynesboro & Chambersburg, PA

🔐 Protect your commercial property closing—ask about our local expertise and title protections.

FAQ: Title Insurance for Commercial Real Estate in Pennsylvania

Q1: Can title insurance prevent boundary disputes?

A: Yes. If a dispute arises post‑closing, title insurance can potentially help pay associated losses or legal costs.

Q2: Is forged deed coverage included?

A: Absolutely—valid title insurance covers prior forged signatures and invalid transfers when discovered after closing.

Q3: Are recording errors common in PA?

A: Yes. Small errors in chains of title or documentation are surprisingly frequent—and costly if unchecked—especially in local markets like Chambersburg and Waynesboro.

Q4: How does which company I choose matter?

A: Local firms like Buchanan Settlement Services know Pennsylvania law and help prevent issues others may overlook—ensuring a smooth, insured commercial closing.