insurance helps provide home buyers and/or mortgage lenders protection
against losses resulting from unknown defects in the title to your
property that existed before the closing of a real estate transaction.
Those unknown "deficits" could be:
- outstanding liens on the property (e.g., unpaid real estate taxes by a prior owner)
(anything that might hinder the owner's right of ownership; e.g.,
errors or omissions in deeds, undisclosed errors, fraud, forgery,
mistakes in examining records)
deficits can result in additional costs in the future or even
invalidate a home buyer's right of ownership in the property. They
might also invalidate the lender's security interest in the policy.
Title insurance policies cover the insured party for any covered losses
and legal fees that might arise out of such problems. It's generally a
good idea to protect yourself against things that could be considered
The OWNER'S POLICY is the
insurance policy that protects the new owners/buyers from any title
defects or problems. Traditionally, in transactions involving
Minneapolis homes for sale, the buyers pay for their own title
insurance policy and they pay for the policy for their lender.
Sometimes, there will be a credit if the previous owners have also had
an owner's title insurance policy. Check out this article for more info.
my opinion, that few hundred dollars paid for owner's title insurance
is well worth the one time expense for the protection provided.
Questions about how a real estate transaction works? Contact me today!
is a seasoned real estate professional, providing real estate
consultations for home buyers and sellers in the Twin Cities since
1994. Susan specializes in homes for sale in Lake Calhoun/Lake Harriet,
Minneapolis, Plymouth, MN, Minneapolis Western Suburban Cities and
Downtown Minneapolis Lofts.