Title Insurance Guidance

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Keeping You Informed

At Quality Title of Willmar, Inc., going above and beyond for our clients is standard operation. Quality Title has two locations in Minnesota – one in Willmar and one in Olivia.

Whether you are in the middle of a transaction or if it’s been some time since your closing, our staff can work with you to make sure you understand the coverage afforded by a title insurance policy and handle the details of resolving past defect should a claim be necessary.

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Why Title Insurance?

How important is title insurance? When you own property, you want to rest assured that the property you are buying or already own is yours. Title insurance is important because it acknowledges that you are the only one who should have any claim or restriction against your home, aside from a mortgage holder.

Sometimes, even the most comprehensive public record searches can miss title faults or complications. You can never be too sure, even when working with professional title examiners. Also, other title problems may exist, which are not disclosed in a search.

With title insurance, you eliminate any risks and losses caused by faults in the title from an event that occurred before you owned the property. It does not protect against any future faults but saves you from a loss from the past’s matters or faults.

All you have to do is pay a one-time premium for a policy that remains effective until the property is sold to a new owner, even if that doesn’t occur for decades.

What is a lender's policy?

A lender’s policy, also known as a loan policy or a mortgage policy, protects the lender against loss due to unknown title defects. It also protects the lender’s interest from some issues which may exist but may not be known at the time of the sale. This policy only protects the lender’s interest. It does not protect the purchaser. That is why a real estate purchaser needs an owner’s policy.

What does an owner's policy provide?

  • Protection from financial loss due to demands that may be charged against the title to your home, up to the cost of the title policy.
  • Payment of legal costs if the title insurer has to defend your title against a covered claim.
  • Payment of successful claims against the title to your home covered by the policy, up to the cost of the policy.

Why does the buyer need title insurance?

Without title insurance, you may not be fully protected against errors in public records, hidden defects not disclosed by the public records, or mistakes in examining the title. As a result, you may be held fully accountable for any prior liens, judgments, or claims brought against your new property. If this should occur, your title policy ensures that you will be defended at no cost against all covered claims up to the amount of the policy.

What does title insurance protect from?

  • Undisclosed heirs
  • Forged deeds, mortgages, wills, releases, and other documents
  • False impersonation of the true landowner
  • Deeds by minors
  • Documents executed by a revoked or expired Power of Attorney
  • False affidavits of death or heirship
  • Probate matters
  • Fraud
  • Deeds and wills by persons of unsound mind
  • Conveyances by undisclosed divorced spouses
  • Rights of divorced parties
  • Deeds by persons falsely representing their marital status
  • Adverse possession
  • Defective acknowledgments due to improper or expired notarization
  • Forfeitures of real property due to criminal acts
  • Mistakes and omissions resulting in improper abstracting
  • Errors in tax records

What is an owner's policy?

An owner’s policy protects you, the purchaser, against a loss that may occur from a fault in the ownership or interest you have in the property. It would be best if you protected the equity in your new home with a title policy.

Why does the seller need to provide title insurance?

Any purchaser will need evidence that his investment in your property is free of title defects. The title insurance policy you provide the purchaser guarantees that you are selling a clear title to your real estate, unencumbered by any legal attachments that might limit or jeopardize ownership. It will reassure your purchaser that he or she is protected from any risks or losses and could help you close your deal.

How much does title insurance cost?

The insurance commission approves and controls the premiums for title insurance policies. The premiums are paid only once, and the cost depends upon the purchase price of the property. The policy amount must be equal to the purchase price.

If you have any other questions regarding title insurance, please contact us at 320-262-5200.

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Quality Title of Willmar, Inc.
1600 Hwy 12 E., Suite A
Willmar, MN 56201
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Fax: 320-262-5152

Olivia Location:
818 East Lincoln Avenue
Olivia, MN 56277

*By Appointment Only

Monday - Friday: 8:30 AM - 4:30 PM