MN Title Insurance: What Does it Cover and Who Can Benefit From It? Title insurance is designed based on a one-time premium. And the premium is determined based on the purchase price - the registered mortgage amount (for a lender policy) and the purchase price (for an owner policy). This is a type of insurance that is designed to provide an indemnity against loss or damage for many covered homepage title risks relating to real property.
Who can benefit? Title insurance in Minnesota is widely used due to its comprehensive coverage and save cost and time on real estate closings. Those who are entitled to benefit from the insurance include: 1. 2. 3. 4.
Existing homeowners Home purchasers Commercial property buyers Residential and commercial lenders
MN title insurance is designed for both commercial and residential properties. They need to meet certain criteria of the insurer. The policy can be acquired for lender, or both the lender and the purchaser.
Coverage area Below is a list of items covered under the policy.
For Lenders - The invalidity or unenforceability of the insured mortgage upon the title, the priority of any lien or encumbrance over the insured mortgage, un-marketability of the title, lack of a legal right of pedestrian and vehicular access to and from the land, legal fees associated with a covered title risk as per the duty to defend contained within the policy.
For Homeowners - Liens or encumbrances on title, tax arrears, work orders, other parties owning an interest in a title, lack of a legal right of pedestrian and vehicular access to and from the land, many forms of title fraud, setback violations, un-marketability of the title to the property.
Conclusion When you go for purchasing title insurance, make sure the company is covering widely. There are many companies in Minnesota. So, before choosing anyone, compare their insurance premium and coverage areas, and then buy the policy.