title insurance company

How Much Minneapolis Owner's Title Insurance do I Need?

If you’re buying a home around Minneapolis, owner’s title insurance is something you’ll want to get. Title insurance covers the cost of your new home in case any claims are placed on the home from before you bought it. There are many options, but how much do you need for your new home? Here is a simple guide to buying title insurance. 

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Start with the Purchase Price

It is best to start with the purchase price of the home so that your insurance can buy the house back after undisclosed claims. If you assume that the claims will be placed right away, the purchase price might be the best option for you. That way, the market will be the same without depreciation or additions to your home. 

Add in Additions

If you have plans for home improvements, you will want to consider those additions and improvements to your title insurance. With each addition, the price of your home will rise, making your home harder to buy back from claims with your insurance. 

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Calculate Market Changes

This is where it gets tricky to calculate what the value of your home will be in the future. The housing market can be predicted for the future, but not everything can be accounted for. Talking with professionals about the housing market changes can help you and your insurance provider find how much the price will change over time to affect the value of your home. If you decide that depreciation over time will lower the value of your home, you could also lower the amount you pay for your title insurance. 

Special Circumstances

There are a few cases where a home is inherited or given in a divorce, your insurance provider will ask an appraiser to evaluate the value of your home. This appraiser will be one of the certified appraisers approved by the insurance company. With the new value on the home, consider that the purchase price, and go through the additions and market changes with your insurance provider.

Remember that owner’s title insurance is calculated by a rate percentage of these prices. For example, if you decide to have the policy cover the purchase price, the actual cost of the owner’s policy will be multiplied by the rate percentage per every hundred or thousand you spend, depending on the policy you choose. If you would like to learn more about title insurance, call our insurance experts at Twin City Title. We are here to help you get the most out of your home.

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?

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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.

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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.

When is Minneapolis Title Insurance Required?

When buying a home in Minneapolis, there are many factors to consider. They can be how much you are willing to pay, what features you want, where you want the house to be, or what reality you want to get a realtor from. While these are all important, it is also important to ask what are the previous owners of the homes like. They could have unpaid taxes, a legal dispute that has yet to be settled, or undisclosed deeds that will fall on you once you purchase the house. Title insurance exists to protect you and your lender from these potential expenses, but is it required to have?

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Lender’s title insurance

When taking out a loan for the new home, the lender will most likely have a policy about insurance on the money that they lend to you, which is called lender’s title insurance. For the lender, it is an investment that they could lose without insurance if something were to happen. Each lender has their own way of finding insurance. That means different lenders will have different policies regarding their lender’s title insurance. 

Owner’s title insurance

Owner’s title insurance comes from a title company and is granted to you, the buyer, to protect the money that they have put into the home. While it is not required by law, it can be required by contract. A buyer should insist on an owner’s policy when buying a home to protect this big step. In Minnesota, owner’s title insurance lasts as long as you or your heirs own the property and can protect you from various claims depending on the policy you choose. 

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Should I get owner’s title insurance

Even though it is not required, owner’s title insurance can protect you and your money if an undisclosed expense claim threatened your investment in your new home. These expenses include liens, building permit violations, property line errors, and encroachment. With owner’s title insurance, the costs for court or settlement is covered by your policy. 

If you are considering buying a new home, contact Twin City Title for any title insurance questions. We are happy to help you make your dream of a new home come true.

Is Minneapolis title insurance tax deductible?

If you’ve purchased a new Minneapolis home in the last year, you may be asking about your tax deductions in 2018. There’s no doubt about it - it’s beneficial to understand your tax benefits now that you’re a home owner. One of the frequent questions we get asked is…”Is our title insurance tax deductible?” If you’ve been asking the same question, we’ve got you covered with this short blog post.

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What is title insurance?

If you’re still in the process of buying your home, you may need to start with what title insurance covers. Title insurance is need for many real estate transactions and will protect you, as the buyer, from any undisclosed claims on the title of your new home. These can include:

  • Undisclosed previous heir to the property

  • Tax liens

  • Judgments against the title/property

  • Unsatisfied mortgage

Title companies will typically investigate your home’s title prior to issuing a title insurance policy to ensure there are no claims on your property and your closing goes smoothly.

How much does title insurance cost?

The cost of your title insurance policy will depend on the cost of the home you are purchasing and what state the home sits in. It’s best to contact your title insurance company for a specific quote. Try our fee calculator for an estimate on your costs.

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Is title insurance tax deductible?

The short answer is no. Your title insurance cost is not tax deductible. However, you can add the cost of title insurance to the cost basis of your home which can save you on taxes when you sell the home.

Capitalizing your title insurance cost

Capitalizing your title insurance cost is simply adding this amount to the cost basis of your home. This can help you save when you go to sell as it will reduce your capital gains.

Consult your tax professional

Don’t take our word for it - we’re the experts in title insurance. Consult your tax professional and research the latest tax regulations.

If you’re ready to purchase a new home and are looking to learn more about title insurance, we’re here to help. We work with individual buyers, real estate agents, and mortgage lenders to give you peace of mind throughout the closing process.

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. 

Common Title Problems to Watch Out For

Your offer has been accepted and you are ready to close on your new home. As you prepare for the big day, your real estate agents begins to speak with you about title insurance. Title insurance protects you from common problems that can occur with your title and closing. So  what are the common title problems you need to watch out for when it comes to your new home?  

Creditor Claims

The previous owner may have outstanding debts when it comes to your new home. From contractors to other work performed on your new home - outstanding debts from the previous owner can have an impact on your title and closing. 

Undisclosed Heirs

Like it or not, undisclosed heirs from a previous owner can have an impact on your title. It can be an heir from the previous owner or from 4 owners ago. If they can prove a legal right to your home, this can affect your title and ownership. 

Common Title Problems to watch out for

Errors in Tax Records

We all make mistakes. However, any errors in previous tax records, no matter how unintentional,  can be costly to correct and can jeapordize your title 

Forgeries

While this one may not be as common as you might think, any forgeries on documents related to your home purchase and closing can become a problem.  Discovered forgeries can make your title null and void.  

Easements and Boundary Disputes

Just when you thought your property belonged to you, you receive a notice of easement or boundary issues with your property. Your city can assess a different boundary or use for your property - creating a title headache (literally). 

The rewards of your new home far outweigh the potential pitfalls in the title process. The best way to maintain peace of mind throughout your home buying process is to ensure you have the proper title insurance. Your title insurance policy will protect you from these common problems and more as you move into your new home.