Texas Allows Personal Property Title Insurance

In 2008, the State of Texas began to allow the issuance personal property title insurance. Some may wonder upon the merits of its usefulness to the title insurance industry and to business as a whole. However, such an insurance product allows the title industry to play a greater role in mergers & acquisition activity. Such insurance product would be highly advisable by any investment bank or law firm representing a buyer conducting any asset-based purchase of a company. In the past, a title insurance company could only offer protection of the title to any real estate involved in a transaction. Companies' balance sheets are never composed just of real estate. Now title companies may offer their customers title insurance protection on a substantial portion of a target company's assets. Simultaneously, the buyer of a company's assets, its lenders and investors may rest assured that they hold marketable title to the assets they purchase.