title insurance

Is Minneapolis Title Insurance Necessary When Paying Cash?

If you’re here, chances are that you’re buying a home soon. Congratulations on your new investment and next step in living the dream! We know you’re excited to have a new place to call your own, but make sure to do all your research when buying a home. Some homeowners have outstanding liens that will go to the new homeowner, making them lose the money they invested putting into the home. We don’t want that to happen to you, which is why we have title insurance. Is title insurance needed for full cash payments, though?


How title insurance works

When buying a home, you’re buying the title of the land, not the land itself. A title is the right to own and use the designated property. Owner’s title insurance covers that title and the money spent to gain it. In turn, it pays for any claims or liens on the home from before you moved in. A lien is an unpaid credit claim on the title of your home, even if there has been a change in ownership. Even if you pay cash on the home, you will still have to cover the costs of those claims. Anything from unpaid work on the house to unpaid taxes can count as a lien on your home. When gaining the title of that property, you also gain any liens attached to that property, even if they were not accrued by you. Title insurance covers the liens left by the previous homeowners, so that you will not have to foreclose your new home to pay for those costs.


Why title insurance is needed when paying cash

Paying cash on your home can be a great feeling. You’re free from mortgage payments and ready to start your life in your new home. However, your cash paid for the title of the property, not the outstanding liens from the previous homeowners. Chances are that after paying cash on your new home, you may not be able to afford to pay the property’s unpaid taxes or housework. The companies or governments that have a lien on your property own that portion that the property owners owe them. Now that you own the title, they have a stake in your property and need to be paid. Those costs still apply even if you pay cash on the home. This is where title insurance comes in. Owner’s title insurance helps pay those liens so that you don’t have to foreclose your home to pay them. 

If you’re buying a home, we can help cover you with title insurance. Call or come in today to find out more about title insurance and how you can get started. We at Twin City Title are always ready to help.

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. 


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. 


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


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.