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Who Needs It: A party or tenant entering into an agreement granting the use or occupancy of land during a specified period of time in exchange for rent.
What Is It: A leasehold policy insures either the owner of a leasehold estate or a lender making a loan secured by a mortgage on the leasehold estate with respect to the title of the property. If a tenant is prevented from using a property because of an insured title matter, the tenant will be covered under this title insurance policy.
Why It Matters: If, in computing loss or damage, it becomes necessary to value the estate or interest of the insured as a result of a covered matter that results in an eviction, the insured may collect the value of the remaining lease term of the leasehold estate.
The tenant may also recover incidental damages, including the following: Reasonable costs of relocating any personal property, rent or damages that the insured might be obligated to pay to any other person who has paramount title to the landlord’s lease, the fair market value of any lease or sublease that the insured had in place at the time of the eviction and reasonable costs in securing a replacement lease, which should include brokerage commissions, costs to obtain zoning and other approvals, architectural and engineering fees, attorney fees and other consulting fees incurred.
The SMPR Difference: A leasehold policy, particularly for businesses, can be extraordinarily complex and any problems that arise with the title can be even more so. SMPR’s Eugene M. Sneeringer Jr. offers unparalleled expertise in leaseholds coupled with a long tradition of integrity. You can rely on us to be there, and you can count on exceptional guidance throughout the transaction.