Minneapolis Owner's Title Insurance

owner's title insurance fAQs

Whether you are a real estate agent or homeowner, owner's title insurance protects you or your client through the process of purchasing their home and the transfer of titles.  Owner's title insurance is an important part of the process which is why it's important to understand your needs.  Learn more about your owner's title insurance below or simply contact us to get your questions answered.  

What is title insurance and why is calculating it so important?

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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. A 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. This type of policy is called owners title insurance.

What is lender’s title insurance?

It is possible that the owner might obtain a mortgage loan for the property being purchased. Now the funds of the lender are involved. The lender might insist on a policy known as lender’s title insurance to protect his or her right against any claim on the title to the property. The lender’s right is restricted to the amount of the mortgage and not over the entire value of the property.

How is title insurance different from other types of insurance?

a)    Traditional insurance covers any loss on occurrence of events in the future whereas title insurance covers actions of the past.

b)   In traditional insurance,  the premiums are calculated on an actuarial basis. In title insurance, the majority of the premium is used as protection in case of anomalies in the title.

Why is the search of the land records done after the transaction of sale is over?

This is because the land records are not perfectly documented and a property buyer might not have access to these records before buying the property. By taking an insurance policy,  the owner hedges the risk and transfers it to the title insurance company. The insurance company conducts the property search in order to protect the interests' of the lender. 

In which countries are such policies available?

In addition to the U.S., this policy is available in countries like Australia, China and Japan, and throughout Europe, Mexico and Korea. You can request your title insurance calculation from anywhere in the world; especially if you are in the U.S. in the beautiful city of Minneapolis or anywhere else in MN.