Frequently Asked Questions
1. How do I best protect my real estate investments?
2. What is a title search?
3. What is an abstract?
4. Why do I need title insurance?
5. Why do we need owners title insurance if our lender is insured?
6. What kind of costs or fees should I use to compare title companies?
7. What should I look for in my title insurance commitment?
8. What do I need to bring to closing?
9. Who can I contact for further information?
How do I best protect my real estate investment?
When buying a property, the best way to protect your investment is to obtain the services of a reputable Title Company to do a thorough title search, and insure you against the chance of a lien or claim being overlooked. Back to Top
A title search is the review of a currently continued abstract of title and/or county real estate records to determine the current condition of the title to the real property. Back to Top
An abstract of title is a summary of the history of ownership of a parcel of land. An abstract of title shows the purchases and sales, mortgages, judgements and other liens or rights against the property as recorded with the county. It reflects the records of the county through the certification date shown on the abstract. It is a necessary part of the sale of real estate. Back to Top
Why do I need title insurance?
Title insurance gives home and real estate buyers protection against claims and loss. When purchasing real estate. you actually don't receive the land itself, but acquire title to the property. This may be limited by rights and claims asserted by others, thus the use of title insurance. There are two kinds of title insurance:
Owners Title Insurance and
Lenders (mortgage) Title Insurance
Owners Title Insurance - is issued in the amount the real estate is purchased for and lasts as long as the insured or his/her heirs have an interest in the property.
Lenders (Mortgage) Title Insurance - is issued for the amount of the mortgage. The lenders title insurance decreases and disappears as the loan is paid off. Most lenders require Lenders (mortgage) title insurance as security for their investment. Back to Top
Why do we need owners title insurance if our lender is insured?
Both you and your lender will want the security offered by title insurance. Your home is an important purchase, and you will want to be certain your home is yours, all yours. Title insurance companies insure your rights and interests in order to protect you against claims. Your lender is looking to insure the enforceability of their lien on your property and marketability. Back to Top
What kind of costs or fees should I use to compare title companies?
- Title Insurance Premium - please call
- Balloon/Arm Endorsement - $50.00
- Title Examination Fee - $160.00
- Purchase Closing Fee - $250.00
- Sellers Side Closing Fee - $275.00
- Refinance Closing Fee - $200.00
- 2nd Mortgage Closing Fee (simultaneous with 1st) - $75.00
- Abstracting or Tract Search (minimum) - $175.00
- Name Searches - $30.00
- Assessment Searches - $35.00
- Courier Charges - $25.00
- Plat Drawing - $60.00
- Document Preparation Fee - $75.00
- Chain of Title - $75.00
Recording Fees (per Document)
- Attest Copy - $2.00
- Conservation Fee - $5.00
- Well Disclosure - $45.00
- Any Document Sent for Recording - $46.00
- Recording Service Fee - $20.00
* Mortgage Registration Tax for Ramsey and Hennepin County is $2.40per/M times the mortgage amount, all other counties in Minnesota are $2.30 per/M times the mortgage amount.
* State Deed Tax for Ramsey and Hennepin County is $3.40 per/M times the purchase price, all other counties in Minnesota are $3.30 per/M times the purchase price.
Remember that each property is unique and has its own special requirements. Back to Top
What should I look for in my title insurance commitment?
You will be interested, primarily, in the extent of your ownership rights. This means you will want to review the ownership interest in the property you will be buying as well as any claims, restrictions or interests of other people involving the property. The commitment will note, in a statement of vesting, the degree, quality, nature and extent of the owner's interest in the real property.
The most common form of interest is "fee simple" or "fee" which is the highest type of interest an owner can have in land. Liens, restrictions and interests of others, which are being excluded from coverage, will be listed numerically as "exceptions" in the commitment. These may be claims by creditors who have liens or liens for payment of taxes or assessments. There may also be recorded restrictions which have been placed in a prior deed or contained in what are termed CC&R's (covenants, conditions and restrictions).
Finally, interests of third parties are not uncommon and may include easements given by a prior owner which limit your use of the property. When you buy property you may not wish to have these claims or restrictions on your property. Instead, you may want to clear the unwanted items prior to purchase.
In addition to the limitations noted above, a printed list of standard exceptions and exclusions listed items not covered by your title insurance policy may be attached as an exhibit item to your commitment. Unlike the numbered exclusions, which are specific to the property you are buying, these are standard exceptions and exclusions appearing in title insurance policies. The review of this section is important, as it sets forth matters which will not be covered under your title insurance policy, but which you may wish to investigate, such as governmental laws of regulations governing building and zoning. Back to Top
What do I need to bring to closing?
BUYERS:
- A photo ID - driver's license, valid passport or employment ID, etc.
- Proof of Homeowner's Insurance and a paid receipt for a one-year premium (your insurance agent can provide you with a binder and paid receipt).
Once you have the annual premium amount and effective date, call your Arden Title CLOSER with your information PRIOR to the closing. The minimum amount of coverage must be at least the amount of your loan or full replacement coverage and the insurance MUST be effective the date of closing. Additionally, the loss payee clause should contain your lender's name and address as instructed by them.
Closing costs - the "Good Faith Estimate" you received from your loan officer will tell you the approximate amount needed at closing. Arden Title requests a CASHIER'S CHECK or CERTIFIED CHECK made payable to yourself for the balance of your downpayment, lender's closing costs and Arden Title's closing costs.
Proof of sale from prior closing (if you just sold other real estate) will also need to be provided.
SELLERS:
- All keys and garage door openers
- All owners and the spouse of each owner need to attend.
Who can I contact for further information?
Arden Title personnel are always available to explain title insurance, closing procedure or answer any other questions you might have. Back to Top
6 Pine Tree Drive Suite 195
Arden Hills, Minnesota 55112
Tele: (651) 490-5101
Fax: (651) 482-1662