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Stress-Free Title & Escrow Services
Northeast Title Insurance provides helpful resources to support buyers, sellers, and real estate professionals throughout Ely, Virginia, and Duluth-Hermantown in Northeast Minnesota. From understanding title and escrow services to preparing for closing, these materials are designed to make the process easier to navigate.
Explore Our FAQs
Understanding Title Insurance
What’s not covered by title insurance?
It won’t cover problems you cause, zoning violations, or defects you already knew about. It also doesn’t apply to issues that arise after your policy date.
What does a title insurance policy cover?
What is title insurance and why do I need it?
Title insurance protects your ownership rights by covering issues such as liens, unknown heirs, fraud, or errors in public records that could affect your property title. It’s a one-time purchase at closing and provides long-term peace of mind.
Types of Policies and Payment
What’s the difference between a lender’s policy and an owner’s policy?
A lender’s policy protects the mortgage lender, while an owner’s policy protects you. You’ll often buy both at closing—usually with a discount when purchased together.
Who pays for title insurance?
In Minnesota, it’s negotiable between the buyer and seller, though buyers typically pay. The premium is collected once, not annually.
The Title Process
What is a title defect?
A defect is anything that affects your legal claim to the property—such as unpaid taxes, an easement, or a forged signature. These are typically resolved before closing.
What is a title search and why is it important?
A title search checks historical records to confirm legal ownership and spot any existing issues like liens or judgments. This helps prevent future legal problems.
Special Situations
Why does my lender need a new policy when I refinance?
Title defects may have developed since your last transaction. Lenders require a new policy to cover their updated financial interest.
Do I need title insurance for a newly built home?
Yes. Even new homes can carry risks like unpaid contractor bills or mechanics’ liens. Title insurance protects against these claims.
If I know the seller, do I still need title insurance?
Absolutely. There may be hidden issues in the property’s history that even the seller doesn’t know about. Only a new owner’s policy protects your rights as the buyer.
Claims and Shopping Tips
Can I choose my title company?
Yes. You have the right to choose any licensed title agent in Minnesota. Don’t feel pressured to go with a lender or agent’s recommendation.
How do I file a title insurance claim?
Contact the insurer listed on your policy right away. Provide a written claim with supporting documents. They are required to respond in a timely manner.
Fraud and Title Protection
What should I do if I suspect fraud on my property?
Contact your title insurance provider immediately. You should also notify your local law enforcement and consider placing a fraud alert or credit freeze with credit bureaus. Prompt action can help minimize financial loss and legal complications.
How can I reduce my risk of real estate fraud?
Work with a licensed, experienced title company. Always verify wiring instructions verbally with your agent before transferring funds, and monitor property records regularly. Purchasing an owner’s title insurance policy adds an additional layer of protection.
Why does my lender need a new policy when I refinance?
Title defects may have developed since your last transaction. Lenders require a new policy to cover their updated financial interest.
Can someone steal my home title?
While rare, title fraud or “deed theft” can occur when someone illegally transfers ownership of a property using false documents. Title insurance can help defend your ownership if this happens and cover losses due to fraudulent claims.
What types of fraud does title insurance protect against?
Title insurance protects against several types of fraud that may affect property ownership. This includes forged signatures on deeds, impersonation of owners, undisclosed heirs, and fraudulent liens. These issues can remain hidden in public records and only surface after a transaction is complete.