Who pays for your Minneapolis title insurance?

When you purchase a new home, there are a variety of items you need in place to ensure that your closing goes smoothly and you walk away with your new house keys in hand. One of those things you’ll need to obtain is title insurance for your Minneapolis home purchase.

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What is title insurance?

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The term title insurance and the requirement of title insurance for real estate transactions began as a way to protect all parties involved. The U.S. is one of many countries where the land records are not perfectly documented. Title disputes can arise when property is transferred from owner to another.  There is an element of risk involved when you transfer a title. Title insurance gives you peace of mind when purchasing your new home. You can get started with our title insurance calculator

When it comes to purchasing title insurance, you will typically need two types of title insurance: lender’s title insurance and owner’s title insurance.

Lender’s title insurance

Lender’s title insurance protects your lender from any title issues. Your lender might insist on a  lender’s title insurance  to protect their right against any claim on the title to the property. The lender’s right is restricted to the amount lent and not over the entire value of the property.

Owner’s title insurance

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Any real estate transaction involving the transfer of immoveable property involves the execution of a document known as the sale deed. This deed shows the details of the seller, buyer and the property in question. In countries such as the U.S. this deed does not dig deep into the previous ownership details, so there are chances that a claim may arise later on from a third party. The third party may claim that the property belongs to him.  If this happens, the sale deed will be declared null and void. An owner’s title insurance policy can be taken by the purchaser of the property to protect oneself from such claims. Usually these claims can arise as a result of the previous owner not having cleared their taxes or from other contractors whose remuneration may not have been paid for the work they have done.

So who pays for title insurance?

Typically, you will pay for both lender’s and owner’s title insurance policies to ensure peace of mind at closing and after. Here at Twin City Title, we are here to help you as you step into buying a new home.  

Why you need title insurance to refinance your Minneapolis home?

Preparing to refinance your Minneapolis home is a big step toward financial freedom. Many homeowners ask if they need a new title insurance policy when they refinance. The short answer is yes and no.

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What is title insurance?

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If it’s been a while since you closed on your home, you may need a short review. Title insurance protects both lenders and owner (through two separate policies) from any issues in a title discrepancy. These issues can range from a lien on the property due to unpaid home improvement contractors, errors in a title transfer from a previous owner, or an undisclosed heir from a previous owner. Your title insurance protects you from any loss with problems with your title and your lender’s title insurance protects your lender from the same.

What you’ll need to refinance

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When you refinance your home, your old loan will be paid off and your new loan will be issued. Even if your refinanced loan is through the same lender, your lender’s title insurance policy will expire the moment your old loan if paid off. Your lender will require a new lender’s title insurance policy to protect their investment on the refinanced loan. The lender’s policy will protect them in case there is a new lien on your property. Liens can be made against your property since your last closing from a discrepancy that was never found in your original title insurance or from a supplier who hasn’t been paid for a home improvement project.

Ready from some good news? Your owner’s title insurance does not expire when the loan is paid off and is still valid as long as you own the home. No need to purchase a new owner’s policy - your original title insurance policy has you covered.

Purchasing a new lender’s policy

While you won’t need to work with the same title insurance company to purchase your new lender’s policy, it may be a good idea. Some title companies may offer discounted rates for a repeat customer on the same property. We suggest shopping around and not jumping at the least expensive offer. If you’d like more information on what to look for in a title insurance company, check out our article titled What To Look For In Your Minneapolis Title Insurance Company.

Refinancing can bring up a variety of questions and we have the answers. If you’re looking for help with title insurance when refinancing your home, our team is ready to help.

Minneapolis Owner’s vs. Lender’s Title Insurance: What you need to know.

When buying a home, title insurance is a must-have to close on your home. But did you know that you will probably need both an owner’s and a lender’s title insurance policy?  Before you sign on the dotted line, it’s important for you know the difference between your Minneapolis owner’s and lender’s title insurance policy.

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Who it protects

As the lender approves your loan, they will also require a loan policy, which is another word for lender’s title insurance. This will protect your lender from any problems with your title or repayment. You will also need owner’s title insurance which will protect you from any issues that may arise regarding your title.

Why lender’s title insurance is important

If there is an issue with your title, your lender will want the amount of your mortgage protected. Most lenders will require a lender’s title policy to protect their interests in case of a title issue like an undisclosed heir coming forward or an error in previous title record.  

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Why owner’s title insurance is important

Owner’s title insurance protects your interests when buying a new home. If the previous owners failed to pay taxes, home remodeling contractors, or anything regarding the house, you could lose your home or be responsible for the cost of correcting these issues. With an owner’s title insurance policy, you can make your home investment with peace of mind knowing your interests are protected.

How to obtain title insurance

While your lender or real estate agent may recommend a title insurance company, we advise investigating title companies for yourself so that you can compare prices and services. Here at Twin City Title, we provide both lender and owner’s title insurance policies to help you and your lender work together as you close on your home.

If you’re ready to purchase a new home, then we’re ready to help with your title insurance needs.

Why You Need Title Insurance for your Minneapolis New Construction Home

Finding and buying a home in this competitive market comes with some challenges. Many Minneapolis home buyers are turning to new construction to find their dream home. And if you've purchased a newly built home, you may be asking if you really need title insurance for the closing process. The short answer is yes, so keep reading to find out why. 

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Previous Land Owners

Title insurance can prevent you and your lender from issues related to title discrepancies or past owners claiming rights to the property you just bought. In the case of new construction, many assume that title insurance is unnecessary because they will be the first owner of the property.  However, the land your new home sits on can have many previous owners and if there is a discrepancy related to a previous transfer of title, this can pose an issue for you as you move into your brand new home. 

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Liens and Your Contractor

Your builder is responsible to pay all subcontractors that work on your new home. If your builder refuses to pay one of the subcontractors, they can place a lien on your property until the matter is settled.  An owner's title insurance policy will protect you from any potential liens places on your property. 

Clerical Mistakes 

Clerical mistakes made before you were even thinking about building a home can come back to bite you. If there was a mistake at the registrar's office or on a title transfer, this can impact your home purchase and closing. Purchasing title insurance can help give you peace of mind that all is in order as you sign on the dotted line. 

Lender Requirements

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Your lender may require an owner's title policy in order to approve your home loan. While your owner's policy protects your rights and interests, lenders will also want a lender's title insurance policy to protect their interests when it comes to payment on your loan.  

If you are purchasing a new construction home, title insurance is a must-have when it comes to ensuring your rights are protected, giving you peace of mind through the entire closing process. Here at Twin City Title, we're here to help. We provide both owner's and lender's title insurance to help you when purchasing your newly built home. 

Minneapolis Title Company Home Closing Checklist

Preparing for your Minneapolis home closing can be overwhelming. From gathering documents to payments to make, there's a lot to remember and check off your to-do list. Home buyers and sellers alike want everything to go smoothly when it comes time for that closing.  If you've been looking for a checklist for your home closing, look no further than our simple title company recommendations for closing day. 

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For Buyers

If you are buying your next home, you'll want to be prepared so you can sign on the dotted line and take possession of your new home. Here's what you'll want to bring to your home closing. 

A certified or cashiers check

You'll want to bring a certified or cashiers check made payable to your title company. The amount of the check will be specified by your loan officer. 

Your personal checkbook

You'll want to bring your own checkbook in case any additional charges arise during closing. 

Valid photo ID

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This can include your driver's license, passport, or state identification card. 

Proof of sale of your current home

If proof of sale of your current home is required by your lender, you'll need to bring your signed Settlement Statement and a copy of the Warranty Deed to your closing. 

Utility Account Set Up

You'll need to call your utility companies to set up your accounts prior to closing. 

For Sellers

If you are the seller, you'll still want to be prepared to ensure a smooth closing. 

Valid photo ID

This can include your driver's license, passport, or state identification card. 

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Keys and garage door openers

You'll want to bring all house keys and garage door openers to hand over at time of closing. 

All current owners

If you're married, you spouse will need to attend the closing. If there is another owner listed on the title, that owner will need to attend. 

Residency list

Bring a list of residence for the last 10 years. 

Sworn construction statement and lien waivers

If any major improvements have been made to your home, you'll need to bring sworn construction statements and and lien waivers. 

Utility Account Closing

Prior to closing, contact your utility companies to get final readings and close your accounts to prepare for the new owners. 

Your home closing doesn't have to be complicated. Here at Twin City Title, we're here to help. 

 

 

5 Home Buying Issues your Minneapolis Title Insurance Could Prevent

When it comes to purchasing a new home, we know you're making a big investment for your family. If you're counting down the days to your closing, you may be interested to know that purchasing title insurance for your Minneapolis home can help protect you from five common home buying and closing issues.  What does purchasing title insurance protect you from?  

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1. Second Sellers

Second sellers are those claiming part ownership in the home or property you are buying. Distant relatives and ex-spouses can sometimes come forward just before closing and claim part ownership or that the seller you are purchasing from has no right to sell the property. If a judge rules in the second seller's favor, you could be faced with buying them out and potentially lose your down payment and principal paid toward the house. Owner's title insurance can cover any losses you face such as attorney fees and court costs. 

2. Property Line Disputes

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Imagine getting ready to close on your new home only to be informed that one of your new next door neighbors has built a fence on your property.  If they finish their project before closing, this could result in a property line dispute. Your owner's title insurance will cover the cost of any legal battle or any effort to have the fence or other item removed.  

3. Hidden Mortgages

Every once in a while, a mortgage can be posted incorrectly.  Most thorough title searches will catch these mistakes, but if the incorrect posting is discovered after closing, there could be an issue with your title. Title insurance can help cover any costs to get the hidden mortgage straightened out and ensure your title is valid. 

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4. Unpaid Taxes

Delinquent tax bills from previous owners can impact your closing and title. Some homeowners have received subsequent tax bills from previous owners after they have taken possession of the property. Your title insurance will cover your costs as long as you have the paperwork from title and tax searches on the property. 

5. Unpaid Liens

One of the more common reasons for title issues is unpaid liens.  These can cover past construction bills that have gone unpaid or unpaid child support. Once you close on your property, you will be liable for paying these liens when they are discovered - even after closing. Purchasing title insurance can ensure peace of mind and cover any extra costs that are discovered. 

Title insurance is a must-have for every new home buyer. As you enter the closing process, it will be helpful to know that you are covered from extra costs and issues associated with your title. Here at Twin City Title, we are here to help. 

 

 

Minneapolis Title Insurance Company Advice: What to expect from your closing process

Finding your next new home can be a rewarding process. If you've recently made an offer on your new home, you may be asking what's next is the home closing process.  Twin City Title, your Minneapolis title insurance company, works with homeowners like you during the closing process.  We guide home buyers with six main steps to your home closing as you head toward signing on the dotted line and receiving your keys. 

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Step # 1: Select a closing agent

Your closing agent will oversee the closing process and make sure that everything happens in the right order without any delays.  Your closing agent can be a title company, escrow company, or a settlement company. Some buyers seek advice from their real estate agent who works with these companies on a regular basis.  

Step # 2: Draft your escrow agreement

Once your closing agent is selected, your escrow agreement is drafted. Your closing agent will review for accuracy and completion.  Your deposit will go into an escrow account where it will remain until closing. 

Step # 3: Title search

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A title search consists of a search of public records regarding your home's title. Title companies perform a search to identify any issues with your title like liens against your property and utility easements. 

Step # 4: Shop for title insurance

Once your title search is complete, it's time to shop for title insurance. There are two types of title insurance. A lender's title insurance policy will cover the lender for the amount of your loan. The owner's title insurance policy protects the homebuyer for the amount of the purchase price. The party that pays for title insurance can be a negotiable item in your sales contract. Once purchased, your title insurance company will issue a policy for your home purchase. 

Step # 5: Obtain closing disclosure

Your lender or closing agent must provide a closing disclosure at least 3 days before the consummation of your loan. This disclosure will help you understand all costs of your transaction including interest rates, monthly payments, and costs to close the loan. 

Step # 6: Closing date set

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Your closing agent orders any updated information that may be required. After these updates are complete, the closing agent sets your closing date, time and location after confirming with lender and seller. 

Once your closing is set, you are on your way to a new home.  Here at Twin City Title Company, we know that the closing process can be overwhelming.  We're here to help you navigate these steps as you finalize the purchase of your new home. 

How is your Minneapolis title insurance calculated?

Purchasing a new home is a big investment. First-time and seasoned home buyers alike can experience sticker shock with the costs of closing. One of these costs includes title insurance. So, how is title insurance calculated and what can you expect for your closing costs?  

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What is title insurance? 

A title insurance policy protects you and your lender from title issues. Your policy will cover any problems uncovered in a title search including liens against your property, disputes between prior owners over wills, clerical mistakes in courthouse documents, or fraudulent claims against the property.

How is it typically calculated? 

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Title insurance is based on the value of your property.  Other factors that can affect your rate include the results of your title search, examination, and expected costs of any title defects. Title insurance is calculated by taking your insurance rate (determined by your title insurance company) and multiplying per thousand of your purchase price. 

For example, if your title insurance rate is 0.07% and your purchase price is $200,000, your title insurance cost would be $ 1400. 

How do you find a title insurance company? 

While some states regulate the title insurance industry, in most states you can shop around for title insurance and find the best rate for your home purchase. You can find possible savings by using the same title insurance company as your lender.  Each title insurance company should provide a detailed quote to help you make the best decision. 

Here at Twin City Title Company, we're here to help.  Browse our FAQs to better understand title insurance or use our title calculators to get an estimate of your title insurance costs.