What is owner's title insurance?

When you purchase a home, the title of that property will be transferred to you at the closing table, making you the rightful owner of the home.

Edina Realty Title employees search all public records to determine your property's potential title risks. However, properties can have complicated histories of ownership. By purchasing owner's title insurance, you'll be protected against hidden claims on the property or claims that the title is invalid. Here's a bit more about how owner's title works.

Did you know that title issues such as liens, easements or bills left behind by a previous owner may not be discovered until months or even years after a property is purchased... even with the most diligent search? The title insurance required by your lender prior to closing protects the lenders only. Owner's title insurance protects you by paying for all attorney's fees and court costs in addition to the costs associated with removing the lien or other covered claim from your title. 

Here are some of the more common issues that are covered by an owner's title insurance policy:

• Liens due to an unsatisfied mortgage or an unpaid charge from a homeowner's association
• Liens for unpaid taxes, including estate, inheritance, income or gift taxes in addition to unpaid real estate taxes
• Errors in public records furnished by tax officials
• False impersonation of property ownership including forged deed
• Undisclosed or missing heirs with ownership in the title

Buying a home is one of the biggest financial commitments you'll ever make. To protect yourself and your new home, make sure you choose an owner's title insurance policy -- more than 80 percent of Americans do. For a one-time fee paid at closing, an owner's policy can protect your property rights for as long as you and your heirs own the property. 

Edina Realty Title can help. Contact them at (952) 928-5200 for assistance.