Minneapolis title insurance vs. an abstract of title

Understanding the paperwork involved in purchasing your new home is essential before closing. If you are buying your next Minneapolis home, you may be familiar with the terms title insurance and abstract of title. However, you may be asking what these terms mean and when you really need them. This helpful blog post has you covered with all the details.


Abstract of title

An abstract of title is a history of the title of the home you are considering for purchase. The abstract will chronologically trace all the public records of your property’s title starting from the original grant of title all the way to present day.

An abstract will include:

  • A list of public records

  • Consecutive grants

  • Wills

  • Conveyances

  • Records and judicial proceedings affecting a title

In addition, your abstracter (the person who prepares your abstract) may also note:

  • Date of the deed

  • Recording date

  • Names of grantor and grantee

  • Description of property

  • Type of deed

Why you should request an abstract of title

Before you sign on the dotted line and extend an offer for that new home, it is important for you to understand what you’re getting. Any discrepancy in the history of the title and deed could results in problems before closing. Your abstract will alert you to any potential problems. If an abstract has not already been provided, you can request an abstract from your title company or the county recorder with jurisdiction over the property.

Title Insurance

Title insurance, on the other hand, is an insurance policy that will protect you against any title defects. Your title insurance policy will protect you against any future loss when it comes to closing and beyond. Your policy can protect you from defects like:

  • Forged documents

  • Undisclosed heirs

  • Mistaken interpretation of wills

  • Misfiled documents

  • Prior liens on the property

  • Unpaid tax bills

  • Defense in court against any lawsuits for the above items

Types of Title Insurance


As you head toward closing on your new home, you will need to secure two types of title insurance. An owner’s title insurance policy protects the owner or purchaser from any title defects. Once you had made an offer or closed on your home, a title defect brought to light could affect your ownership in the home or could cause a court battle to defend your ownership rights. An owner’s title insurance policy will protect your interests should a title defect be discovered.

In addition, you will also need to obtain a lender’s title insurance policy. The lender’s policy protects your mortgage lender’s investment should you be unable to pay off your debt. A lender’s policy will most likely be a condition of your mortgage approval.

For both owner’s and lender’s policies, your title insurance company will require both the abstract and a title search before they issue your title insurance policies. Here at Twin City Title, we’re here to provide peace of mind when it comes to buying your new home and protecting you from any title defects. If you’re ready to get started and learn more about title insurance, we’re ready to help.