Property Ownership
A Minnesota couple purchases a home with title insurance. After closing, they learn the sellers failed to disclose that the property was previously used as a methamphetamine lab. The title insurance policy:
ACovers all post-closing discoveries of property defects
BDoes NOT cover physical conditions or environmental contamination - only title defects✓ Correct
CCovers the cleanup costs since it occurred before their purchase
DCovers the buyers' legal fees to sue the sellers
Explanation
Title insurance covers defects in title (ownership, liens, encumbrances) not physical conditions of the property or environmental contamination. A prior meth lab use is a physical/environmental issue, not a title defect.
Related Minnesota Property Ownership Questions
- A Minnesota homeowner's property is subject to a homeowners association (HOA). The HOA has the authority to enforce covenants, conditions, and restrictions (CC&Rs). Which statement is true regarding HOA enforcement in Minnesota?
- A profit a prendre in Minnesota law grants the holder the right to:
- In Minnesota, a 'license' as a property right (not a real estate license) differs from an easement in that:
- A Minnesota property held as joint tenancy has the unique feature that upon one owner's death:
- In Minnesota, a 'prescriptive easement' may be established by:
- In Minnesota, a condominium owner holds:
- In Minnesota, what is the difference between a 'deed of trust' and a mortgage?
- In Minnesota, a 'covenant running with the land' in a deed:
Practice More Minnesota Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Minnesota Quiz →