Northwest Minnesota, Minnesota Title Insurance

Title Insurance Introduction

A commitment to issue this insurance policy is given to your lawyer prior to closing. it will show who owns the property, what liens or other matters affect the seller's ownership (such as mortgages, unpaid taxes or judgment), along with any easements, building restrictions, set-back lines or other matters of record which affect the property.

A fault on the title is generally referred to as a "cloud" on title. Unlike other property & casualty types of insurance (auto, home, etc) title insurance insures against past events, not events yet to come. Northwest Minnesota title insurance companies assume the risk that title to a parcel of real estate is as it is presented to be in the policy. A title insurance policy covers the buyer or lender against losses suffered if title to the property is not as the policy states it to be. If, for some reason, a lien showed up on your title after you closed and that lien gave another person rights to your home, title insurance will take affect pay any damages that may result.

Title Insurance Tips

If you are preparing to sell, buy or refinance property, these suggestions may be very useful to you.

Clients may shop title insurers for the most inexpensive rates. Often times, a seller's agent/broker will select a title company with which they wish to use, however buyers or sellers are not required to use this company. Real estate agencies and title agents may have related business arrangements with each other and this must be made known.

The premium rates charged by a title company are required to be filed with the Division of Insurance for most states. Likewise, the closing and settlement fees charged by a title company, or title agency, are required to be filed with the Division of Insurance. These rates and fees are offered for public inspection.

When you use a title company to prepare closing documents, these documents must be prepared in accordance with the closing instructions provided by the lender, broker or both. Your attorney will evaluate this title commitment and require that the seller settle any items which are not permitted by your contract and which would adversely affect your ownership rights.

Mortgage Lenders typically require a lender's title insurance policy when providing a loan. The lender's instructions and requirements must be met before they will grant a loan. The lender generally determines the extent of coverage that this title insurance policy provides.

A Title company is required to carry out a thorough title search to make certain a clear title. If a "cloud" on the title is revealed, the company will normally specify corrective actions that has to be completed prior to, or at the time of, the closing. It is highly suggested that all parties involved read carefully the exceptions page of their title commitment and policy.