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.


What is title insurance?


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


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.