Escrow & Title
A Minnesota title company charges a 'gap premium' in addition to the standard title insurance premium. What does the gap period refer to?
AThe time between the appraisal and the closing
BThe period between the date of the title search and the date the deed is actually recorded✓ Correct
CThe time between loan application and underwriting approval
DThe period the property was vacant before the sale
Explanation
The 'gap' is the period between when the title search was completed and when the new deed is actually recorded. During this gap, new encumbrances could be filed against the property (judgments, tax liens, mechanics' liens). The gap premium extends title insurance coverage through the recording date, protecting the buyer and lender against risks arising during this period.
Related Minnesota Escrow & Title Questions
- At a Minnesota closing, the seller is asked to provide an 'owner's affidavit.' What information does this document typically contain?
- Which of the following liens has the highest priority in Minnesota?
- In Minnesota, a Torrens certificate of title provides which benefit over abstract title?
- In Minnesota, a 'holdback' at closing is used when:
- In Minnesota, a 'condition subsequent' in a deed creates what type of estate?
- A Minnesota closing is scheduled for December 31 but must be postponed to January 3 due to a holiday. Who bears the cost of additional interest during the delay?
- In Minnesota, which of the following would be found in the public real estate records?
- A Minnesota buyer purchases a home and later discovers that the prior owner had a judgment lien that was never reported and is now being claimed against the property. The buyer's owner's title insurance policy:
Practice More Minnesota Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Minnesota Quiz →