The Torrens System of Land Registrations from a to Z

The Torrens System of Land Registrations from A to Z

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Faculty

Matthew J. Foli Deputy Hennepin County Examiner of Titles Minneapolis

Table of Contents

1. Overview of the Torrens System in Minnesota

2. Taking the Mystery Out of the Initial Registration Process

3. PhD Level Discussion of Torrens Issues

- Matthew Foli Section 1 SECTION 1

Overview of the Torrens System in Minnesota

Matthew Foli Deputy Hennepin County Examiner of Titles Minneapolis

The Torrens System of Land Registrations from A to Z- August 17, 2016

8/10/2016

Overview of the Torrens System

Matthew Foli Deputy Examiner of Titles

Ourleader

TorrensandAbstract

• RealestateinMinnesotamaybe“registered” underChapter508

• RegisteredlandisTorrens

• Unregisteredlandisabstract

1 8/10/2016

TorrensandAbstract

Treatedthesame,mostofthetime

TorrensandAbstract

• Abstractoftitleisevidence oftitle

• CertificateofTitleisthe title

Belikethecoolkids

• Noadversepossession

• ThreeͲdimensionalsurvey

• Easierexaminationoftitle

2 8/10/2016

WhoislookingoutforYOU?

• Transactionswithouttitleinsurance • Dissolutionjudgmentanddecree • Success! • Probatedistribution • Success!

WhoislookingoutforYOU?

• Sametransactionswithabstractproperty?

Effectofdecreeofregistration

Foreverbindingandconclusive,uponallpersons

3 8/10/2016

Drawbacks

Condominiums

• EitherallabstractorallTorrens

• SeeRule222

• Whatisthesolution?

InitialRegistrationProceeding

ChangetitlefromabstracttoTorrens

Acourtproceeding– requiresserviceofprocess andcourtappearances

Usuallyuncontested,sochillax

4 8/10/2016

RightsofRegisteredOwners

• Freefromallencumbrancesexceptwhatison thecertificate

• Sevenstandardexceptionstotitle

• Nodifferencebetweenmemorial/recital

5 8/10/2016

Whatisthefourthexceptionclause?

• The first five were • Different due part of the original diligence? Torrens Act.

Allyouwillcareaboutisthe currentcertificateoftitle

Showstheowner,theland,andthe encumbrances

CertificateofPossessoryTitle • Onlyfor“uncontestedtitles”

• Possessorytitle

• Notacourtproceeding

• Countyboardresolution

6 8/10/2016

ProceedingsSubsequentto InitialRegistration

• Onlyjudicialproceedingavailable(withsome exceptions)

• Majorityofcasesinvolveforeclosures

WhoamI?

7 8/10/2016

WhoamI?

• A“competentattorney”appointedbycourt

• Legaladvisertotheregistraroftitles

• Referencelibrarian

• Factfinderforthedistrictcourt

Registrar of Titles

8 8/10/2016

Can’tgetyourdocumentfiled?

• Verified claim of unregistered interest

• Section 508.70

• Uniform Conveyancing Blank forms

Workthesystem

• Registrar’scorrectiondocument

• Directivebyexaminer

• Exchangecertificate

Planahead!

Somedeedsrequiremyapproval • Trustee’sdeed • Probatedeeds • Adissolutionjudgmentanddecree • (InHennepin)deedbyattorneyinfact

Table of Contents

Page

I. Overview of the Torrens system in Minnesota ...... 1

II. Initial registration of title ...... 5

III. Rights of registered owners ...... 5

IV. Registration of title without a court proceeding under Chapter 508A ...... 7

V. Proceedings subsequent to initial registration...... 8

VI. Who is the examiner of titles and what is her role? ...... 8

VII. When you go to the courthouse to record the deed, make sure you know if the land is abstract or Torrens ...... 9

VIII. What does the registrar of titles staff do when you present a deed for recording? ...... 9

IX. How to claim an unregistered interest after registration ...... 10

X. How to use registrar’s corrections, examiner’s directives, and exchange certificates ...... 10

XI. Transactions involving registered land ...... 11

Appendices

A. Sample Certificate of Title ...... 13

B. Annotated Certificate of Title ...... 14

I. OVERVIEW OF THE TORRENS SYSTEM IN MINNESOTA

Real estate in Minnesota may be “registered” under the provisions of Minnesota Statutes Chapter 508. Registered land is known as Torrens property, and unregistered land is known as abstract property. “Registered land shall be subject to the same burdens and in- cidents which attach by law to unregistered land.” Minn. Stat. § 508.02. The following summary of the Torrens system of land registration, as adopted in Minnesota, comes from Hersh Properties, LLC v. McDonald’s Corporation, 588 N.W.2d 728, 733-34 (Minn. 1999) (citations omitted):

Prior to 1901, all real property in Minnesota was abstract property. Under the abstract system, documents evidencing mar- ketable title may be found in recorded documents or by material outside the recording system. Generally, the prospective purchaser of real property looks at recorded documents to determine market- able title of record. These documents consist of written evidence of transactions that affect the real property and are recorded with the county recorder in the particular county where the property is located. The recorded documents then become public records and operate as an instrument of conveyance as well as a means to ap- praise title. Typically, a summary of the material parts of these recorded or filed documents—an abstract of title—is prepared to provide a prospective purchaser or mortgagor with a simplified and convenient method to ascertain marketability of title. In 1901, Minnesota adopted the Torrens system. The purpose of the Torrens system was to create a title registration procedure intended to simplify conveyancing by eliminating the need to examine extensive abstracts of title by issuance of a single certificate of title, free from ‘any and all rights or claims not registered with the registrar of titles * * *.’ Torrens registration provides a means to determine the state of title through the inspection of a single document, the certificate of title, except for seven specified interests enumerated in Minn. Stat. § 508.25. At the time the Torrens Act was adopted in Minnesota, the Torrens system had a long and established history. As early as the 1850’s, Sir Robert Richard Torrens implemented the Torrens system of title registration in South Australia, ‘though a similar system had been in vogue’ for several years in Europe. When Minne- sota adopted the Torrens system, the goal of the legislature was ‘to clear up and settle land titles’ and, to that end, a proceeding was authorized by which title could be settled by judicial decree. An officer of the court, the examiner of titles, oversees all stages of registration of title under the Torrens system. Title registration does not create or transfer a legal interest until the examiner of titles, subject to the jurisdiction of the court, makes a comprehensive assessment of the current state of title. Ini-

1 tial title registration of real property is a relatively involved proceeding that ultimately results in a certificate of title being issued, which ‘shall be received in evidence in all the courts of this state and be conclusive evidence of all matters and things contained in it.’ The Torrens Act provides in relevant part that:

Every person receiving a certificate of title pursuant to a decree of registration and every subsequent purchaser of registered land who receives a certificate of title in good faith and for a valuable consideration shall hold it free from all encumbrances and adverse claims, excepting only the estates, mortgages, liens, charges, and interests as may be noted in the last certificate of title in the office of the registrar * * *.

Unlike the abstract system, where evidences of title are recorded, under the Torrens system there is a judicial proceeding whereby title itself is registered. The conclusiveness of certificates of title is maintained by court adjudication and through statutes of limitations. Accordingly, in order to maintain the reliability of certificates of title, certain subsequent transfers of title and changes to the certificate must be made either by court order or by approval of the examiner of titles. Subsequent transfers of title where the old certificate of title is cancelled and a new certificate of title is issued can only occur when the registrar of titles follows specific proce- dures. No erasure, alteration, or amendment to the certificate of title can be made except by court order or by approval of the examiner of titles. The conclusive nature of certificates of title allows real property owners to rely on the certificate of title while disre- garding most interests not evidenced on the current certificate of title.

A. Benefits of Torrens title.

1. No title to registered land in derogation of that of the registered owner shall be acquired by prescription or adverse possession. Minn. Stat. § 508.02. However, the common law doctrine of practical location of boundaries applies to registered land whenever registered. Id.

2. The certificate of title is the title, not simply evidence of title. “The certificate of title * * * shall be received in evidence in all the courts of this state and be conclusive evidence of all matters and things contained in it.” Minn. Stat. § 508.36. In contrast, an abstract of title shall be received as prima facie evidence of all instruments therein referred to, together with the records thereof as recorded in the office of the county recorder. Minn. Stat. § 600.19.

2 3. The act of registration shall be the operative act to convey or affect the land. Minn. Stat. § 508.47, Subd. 1.

4. You can divide Torrens land by use of a three-dimensional registered land survey. Minn. Stat. § 508.47, Subd. 4.

5. Neither the reference in a registered instrument to an unregistered instrument or interest nor the joinder in a registered instrument by a party or parties with no registered interest shall constitute notice, either actual or constructive, of an unregistered interest. Minn. Stat. § 508.48(a). This dif- fers from Title Standard Nos. 14, 15, and 16. But see In re Collier, 726 N.W.2d 799 (Minn. 2007) (holding that under Minn. Stat. § 508.25, a purchaser of Torrens property who has actual knowledge of a prior, unregistered interest in the property is not a good faith purchaser).

6. Judgments do not affect the land unless specifically memorialized on the certificate of title. Minn. Stat. § 508.63. One exception: federal court judgment liens in favor of the United States. Search the records of the county recorder for these judgments. See Title Standard No. 82.1.c. See also Minn. Stat. § 508.25, particularly the first standard exception appearing on all certificates of title—liens, claims, or rights arising or existing under the laws or the Constitution of the United States, which this state cannot require to appear of record.

7. The benefits of a certificate of title over an abstract of title (or no abstract of title). Title examination is quicker and should be cheaper. No need to store the abstract of title or create new abstracts of title after the land is developed.

B. Effect of the decree of registration.

1. A decree of registration cannot be adjudged invalid or set aside unless an action to contest the decree is started within six months from the date of the decree. Minn. Stat. § 508.28. Compare to the five-year statute of limitations to vacate or set aside a judgment or decree quieting title or determining adverse claims. Minn. Stat. § 548.25.

2. Every decree of registration shall bind the land described in it, forever quiet the title to it, and be forever binding and conclusive upon all persons, regardless of whether they were mentioned in the application or in the report of examiner or whether they possessed an interest in the land not referred to in the application or in the report of the examiner, whether they were mentioned by name in the summons, or included in the phrase, “all other persons or parties unknown claiming any right, title, estate, lien, or interest in the real estate described in the application herein.” Minn. Stat. §

3 508.22. Compare to the second-guessing that can take place with regard to a judgment or decree quieting title or determining adverse claims.

3. A decree of registration cannot be vacated for excusable neglect under Minn. R. Civ. P. 60.02, because rule 60.02 is inconsistent with certain provisions of the Torrens Act. In re Brainerd Nat’l Bank, 383 N.W.2d 284, 286-87 (Minn. 1986); see also Murphy v. Borgen, 148 Minn. 375, 182 N.W. 449 (1921).

C. Do not overlook the cost to obtain Torrens title.

The benefits come with a cost in terms of both time and money.

1. Time. In Hennepin County, for example, the examiner of titles and deputy examiners are full-time county employees. We are the legal adviser to the registrar of titles – we have only one client. And, we are officers of the court who oversee the initial registration process, and the proceedings subsequent to initial registration. This format is found in Ramsey, St. Louis, and Anoka Counties. In an initial registration case, several months may pass between the time when the application is filed and the report of examiner is issued. This delay is due in part to the preparation of the abstract of title and the surveyor’s inspection report, but it is primarily due to the work load in the examiner’s office. In all other counties, the examiner of titles position is part-time. So, the examiner has a private law practice that requires attention, too. This examiner has more than one master. Your needs and the needs of your client may be juggled with the needs of the examiner’s own clients.

2. Money. In Hennepin, Ramsey, St. Louis, and Anoka Counties, the examiner’s compensation is “fixed and determined by the court and paid in the same manner as the compensation of other county employees is paid.” Minn. Stat. § 508.12. In all counties having fewer than 75,000 inhabitants, and in Stearns, Dakota, Scott, Wright, and Olmsted Counties, the fees and compensation shall be paid by the person applying to have the person’s title registered. Id. The fees charged for examining title can vary and, de- pending on the case, be expensive.

3. The in-depth nature of a registration proceeding may result in more defendants. For example, under Minn. Stat. § 508.14, the county surveyor shall inspect the land being registered and file a report with the court administrator. This “inspection report” will include the surveyor’s observa- tions regarding the location of all structures, fences, and other improve- ments thereon. Id. The examiner may conclude that the owners, encumbrancers, and occupants of adjoining lands should be made defendants in order to adjudicate any rights they may have to the land being registered. This would typically not be required in an action to determine adverse

4 claims. And, you may be trying to fix one title problem, but the examiner’s report identifies additional problems, which results in more defendants to serve, more work to clear title, etc.

D. Sometimes you don’t have a choice.

A condominium shall not include both abstract and Torrens land, but shall consist only of land that is all abstract or all Torrens. Minn. Gen. R. Prac. 222(e). If your client intends to create a condominium pursuant to Minnesota Statutes Chapter 515B, and the parcel of land is currently part abstract and part Torrens, you better start the registration proceeding before the groundbreaking ceremony.

II. INITIAL REGISTRATION OF TITLE

An action to register title under Minnesota Statutes Chapter 508 is known as an initial registration proceeding, and the end result is the transfer of the title from the recording act system (abstract title) to the registration system (Torrens title). The proceeding is in the nature of a suit to quiet title against all persons, both known and unknown, who could possibly assert an adverse right. The following sequence of events occurs in registration proceedings in district court:

A. The proceedings begin by the filing of an application.

B. The applicant then files an abstract of title.

C. The examiner of titles issues a report listing the persons who should be joined as defendants in the matter.

D. A land title summons is issued, published and served on the defendants.

E. A hearing is held, after which the court issues its order and decree of registration.

F. A certified copy of the order and decree of registration is filed with the registrar of titles, who then issues a certificate of title.

Minnesota Statutes Chapter 508 and Rule 201 et. seq. of the General Rules of Practice for the District Courts are applicable to initial registration proceedings (and proceedings subsequent to initial registration, see section V below).

III. RIGHTS OF REGISTERED OWNERS

Torrens registration provides a means to determine the state of title through the inspection of a single document, the certificate of title, except for seven specified interests enumerated in Minn. Stat. § 508.25. Hersh Properties, LLC v. McDonald’s Corporation, 588 N.W.2d 728, 733 (Minn. 1999). Under Section 508.25, every person receiving a certifi-

5 cate of title, in accordance with a decree of registration, shall hold the land subject to the following rights or encumbrances against it, if any:

(1) liens, claims, or rights arising or existing under the laws or the Constitu- tion of the United States, which this state cannot require to appear of record;

(2) the lien of any real property tax or special assessment;

(3) any lease for a period not exceeding three years where there is actual occupation of the premises thereunder;

(4) all rights in public highways upon the land;

(5) the right to appeal, or the right to appear and contest the application, as is allowed by Chapter 508;

(6) the rights of any person in possession under deed or contract for deed from the owner of the certificate of title; and

(7) any outstanding mechanics lien rights which may exist under Minn. Stat. §§ 514.01–514.17.

The first five exceptions were part of the original Torrens Act adopted in 1901; Act of Apr. 11, 1901, ch. 237, § 30, 1901 Minn. Laws 348, codified at R.L. § 3370–403 (1905). In 1931, the legislature added exception clause (6). 1931 Minn. Laws ch. 357, § 1. In 1983, the legislature added exception clause (7) and also added the words “real property” to exception clause (2). 1983 Minn. Laws. ch. 92, § 8.

“The purpose of the Torrens law is to establish an indefeasible title free from any and all rights or claims not registered with the registrar of titles, with certain unimportant exceptions, * * *.” In re Juran, 178 Minn. 55, 58, 226 N.W. 201 (1929) (emphasis added). Those certain unimportant exceptions would have been the first five interests shown above. Ironically, the effect of the Supreme Court’s decision in Juran, based on the specific facts of the case, was overturned by the legislature in 1931 by the addition of exception clause (6): “the rights of any person in possession under deed or contract for deed from the owner of the certificate of title.” So, the exceptions must have some importance, even if they affect all Torrens land in Minnesota.

PRACTICE TIP: If your client is purchasing Torrens property, you should treat the seven exceptions seriously—but I think your due diligence would be the same for abstract property.

x Visit the property. Who occupies it? Under what right is it occupied? See exception clauses (3) and (6).

6 x Is there a public highway over the land? The Minnesota Court of Appeals noted that exception clause (4) applies to public highways existing prior to the initial registration of the land. Hebert v. City of Fifty Lakes, 784 N.W.2d 848, 853 n.1 (Minn. App. 2010).

x Check the records of the county recorder for federal tax liens against the fee owner, and federal court judgment liens in favor of the United States and against the fee owner, to cover exception clause (1).

x Contact the local taxing authority and see if there are delinquent property taxes, or a pending special assessment, to cover exception clause (2).

x Ask the seller if there has been any labor or materials furnished to the premises for which payment has not been made, to cover exception clause (7).

x Exception clause (5) loses its relevance once the property has been registered for more than six months, see Minn. Stat. §§ 508.28 and 508.29(1).

In summary, visit the property, order a name search, review the property taxes, talk to the township/city/county about any assessments, and require the standard affidavit of seller, Uniform Conveyancing Blank 50.1.2.

IV. REGISTRATION OF TITLE WITHOUT A COURT PROCEEDING UNDER CHAPTER 508A

Minnesota Statutes Chapter 508A provides a voluntary procedure for registration of certain possessory estates in land with certainty, at reasonable cost and speed, and without the necessity for the initial adjudication required by Chapter 508. Minn. Stat. § 508A.01, Subd. 2. This non-judicial procedure is appropriate for “uncontested titles”—because no adjudication is available, title defects cannot be cured by this procedure. The result is a certificate of possessory title (CPT). Five years after the date of the first CPT, the registrar of titles, upon the filing of any instrument transferring title, shall issue a certificate of title and cancel the CPT. Id.

The term “possessory estate in land” means a fee simple estate held by an owner who has been found by the examiner of titles to be the record owner of the land, and has satisfied the examiner of titles that the owner is in actual or constructive possession of the land. Minn. Stat. § 508A.01, Subd. 3. Property that is registered under Chapter 508A is subject to the rights of persons in possession, if any, and rights which would be disclosed by a survey. Minn. Stat. § 508A.02, Subd. 1.

Certificates of possessory title are available in those counties in which the county board has passed a resolution authorizing them. Minn. Stat. § 508A.01, Subd. 1. In 2012, the list of counties included Anoka, Carver, Cass, Crow Wing, Hennepin, Isanti, Mille Lacs, Pope, Ramsey, Scott, Sherburne, Swift, and Wabasha.

7 V. PROCEEDINGS SUBSEQUENT TO INITIAL REGISTRATION

All subsequent proceedings relate to some change desired in the title as currently registered. And there is only one judicial process available. In Phillips v. Dolphin, 776 N.W.2d 755, 758 (Minn. App. 2009), the court of appeals held that “[w]hen the Torrens Act specifies the procedure necessary to take some action regarding registered land, parties and district courts must follow this procedure.” The court noted that “[t]he Torrens system is designed to conclusively establish matters of ownership. The title examiner par- ticipates in proceedings, and all interested parties, including mortgagees, are notified of proceedings and allowed to participate. This process ensures compliance with due process and statutory requirements.” Id. at 759. The following sequence of events occurs in proceedings subsequent to initial registration in district court:

A. The proceedings begin by the filing of a petition.

B. The examiner of titles issues a report listing the persons who should be given notice of the proceeding.

C. An order to show cause is issued and served on the persons named in the examiner’s report.

D. A hearing is held, after which the court issues its order.

E. A certified copy of the order is filed with the registrar.

VI. WHO IS THE EXAMINER OF TITLES AND WHAT IS HER ROLE?

Minn. Stat. § 508.12, Subd. 1, requires the judges of the district court to appoint a compe- tent attorney in each county within their judicial district to be an examiner of titles and legal adviser to the registrar. The judges may also appoint attorneys to serve as deputy examiners. The examiner of titles and deputy examiners shall hold office subject to the will and discretion of the district court by whom appointed.

All applications to register title to land are referred to the examiner of titles without further order of the district court. Id. Immediately after the filing of the abstract of title, the court administrator shall refer the file to the examiner of titles, who shall proceed to examine into the title of the land described in the application, and into the truth of all matters set forth therein. Minn. Stat. § 508.13. The examiner shall file in the case a full report thereof, together with the examiner’s opinion upon the title. An examiner shall have full power to administer oaths and examine witnesses concerning any matter involved in the examiner’s investigation of titles. Id.

Examiners shall, upon the request of the registrar of titles, advise the registrar upon any act or duty pertaining to the conduct of the office (of the registrar of titles), or prepare the form of any memorial to be made or entered by the registrar. Id.

8 In all cases where, under the provisions of Minnesota Statutes Chapter 508, application is made to the court for any order or decree, the court may refer the matter to the examiner of titles for hearing and report, just like for an initial registration. Id.

If an answer is filed, in an initial registration or a proceeding subsequent, the case shall be tried by the court in like manner as an ordinary civil action. Minn. Stat. § 508.20. The court may refer the case, or any part thereof, to one of the examiners to hear the parties and their evidence, and make a report to the court. Id.

So, the examiner of titles is an attorney who wears two hats. She acts as legal adviser to the registrar of titles, and assists parties in transactional situations. And, she acts as a fact finder for the district court, and then recommends orders to be entered by the court.

VII. WHEN YOU GO TO THE COURTHOUSE TO RECORD THE DEED, MAKE SURE YOU KNOW IF THE LAND IS ABSTRACT OR TORRENS

In each Minnesota county there is abstract property, and all documents that affect abstract land are filed with the county recorder. In almost every Minnesota county there is Tor- rens property, and all documents that affect Torrens property are filed with the registrar of titles. County recorders shall be the registrar of titles in their respective counties. Minn. Stat. § 508.30. The land records are usually located in the county courthouse, and the county recorder and registrar of titles are in the same office. When you go to record your documents, the county staff may accept abstract documents at one end of the coun- ter, and Torrens documents at the other end. Just make sure to file the documents with the correct person!

VIII. WHAT DOES THE REGISTRAR OF TITLES STAFF DO WHEN YOU PRESENT A DEED FOR RECORDING?

The registrar of titles staff act as gate keepers; the county recorder staff do not. When a document gets presented for filing with the registrar of titles, the staff person finds the current certificate of title for the property, and checks to see that the grantor has an interest to convey (e.g., a deed for the fee title) or encumber (e.g., a mortgage for a home eq- uity line of credit) or assign (e.g., an assignment of a mortgage from one bank to another). If the grantor does not appear to have an interest on the certificate of title, the registrar of titles will not accept the document for filing. If the legal description on the document does not contain some land described on the certificate of title, the registrar of titles will not accept the document for filing. So, the following stray deeds are avoided in the Torrens system: conveyance of a stranger into the chain of title (see Title Standard 14) and the conveyance from one stranger to another (see Title Standard 16). The registrar of titles will accept for recording a document executed by a party having a registered interest and joined in by a party with no registered interest (see Title Standard 15). But the registrar and the public can ignore the joinder, under Minn. Stat. § 508.48(a):

Neither the reference in a registered instrument to an unregistered instrument or interest nor the joinder in a registered instrument by

9 a party or parties with no registered interest shall constitute notice, either actual or constructive, of an unregistered interest.

The registrar of titles keeps track of all the certificates of title. Minn. Stat. § 508.34 states:

The registrar shall keep a book known as the “Register of Titles,” and shall enter all first and subsequent certificates of title by binding or entering them therein in the order of their numbers, beginning with the number one. * * * Each certificate shall constitute a separate page of such book, and all memorials and notations that may be entered by the registrar shall be entered by the registrar upon the page whereon the latest certificate of title is entered.

Instruments affecting the title to land, filed with the registrar, shall be numbered by the registrar consecutively, to the extent practicable. Minn. Stat. § 508.38. When a deed is accepted for filing, the registrar of titles gives the deed the next available document number, and then issues a new certificate of title, with the next available number for certificates of title, and then marks the old certificate of title “canceled.” Minn. Stat. § 508.52.

The registrar of titles shall also keep a tract index, for each parcel of land, and also a grantors’ reception index and a grantees’ reception index. Minn. Stat. § 508.37, Subd. 1a. These indexes are also required to be kept by the county recorder for abstract property, see Minn. Stat. §§ 386.03, 386.04, and 386.05. But usually, for Torrens property, all you care about is the current certificate of title, which shows the current owner, a description of the land, and the current encumbrances.

IX. HOW TO CLAIM AN UNREGISTERED INTEREST AFTER REGISTRATION

Short answer: Follow Minn. Stat. § 508.70 and use the uniform conveyancing forms. If you have a document that cannot be accepted by the registrar of titles, because you lost the original, or there is a break in the chain of the title so the grantor does not have an interest of record, you can “claim an unregistered interest.” You put the world on notice of the alleged interest, and then prove it up through a proceeding subsequent.

X. HOW TO USE REGISTRAR’S CORRECTIONS, EXAMINER’S DIRECTIVES, AND EXCHANGE CERTIFICATES

Let’s back up for a moment. What should you do if the registrar of titles rejects a document for filing? In that situation, a party in interest may refer the matter to the examiner of titles for review. The examiner of titles may approve the document for filing by en- dorsing the words “approved for filing” on the document. Upon approval, the registrar shall accept the document for filing. Minn. Stat. § 508.321.

PRACTICE TIP: On behalf of the examiners of title, and the registrars of title, in all 87 counties, please start at the registrar’s office, get the input of the Torrens supervisor, then go see the examiner. From my own mistakes made in private practice, do not bite the

10 hand that feeds you. There will always be a bigger deal, and it is always better to work with a registrar’s staff that understands you, and has forgiven you.

A. Registrar’s correction document. The registrar of titles may correct clerical errors or omissions made by the registrar’s staff in producing certificates of title. Minn. Stat. § 508.71, Subd. 1a. Examples include the misspelling of names, the failure to show ownership as joint tenants, typographical errors in the legal description, and carrying forward memorials of interests that have terminated. Po- litely ask the registrar to correct these errors.

B. Directive by examiner. At the request of a registered owner or other person in interest, the examiner of titles by a written directive may order (1) the amendment or cancellation of a memorial relating to racial restrictions, rights which are barred by a statute or rights which have expired by the terms of the instrument creating the rights, or (2) upon the submission of evidence satisfactory to the examiner, the correction of the name or designation of a party who is a registered owner or who has an interest registered on a certificate of title. Minn. Stat. § 508.71, Subd. 3.

C. Exchange certificate. The owner of registered land may request the registrar of titles to issue a new certificate of title free from the memorials of all interests which have terminated. Minn. Stat. § 508.421, Subd. 1a. The less memorials on the certificate of title, the better. Or, if the owner holds separate certificates of title for different parcels of land, the owner can request that the registrar combine the two certificates of title into one new certificate. Minn. Stat. § 508.421, Subd. 2.

The exchange certificate should be ordered after you obtain and file the examiner’s directives and the registrar’s correction documents. Then you end up with a new certificate of title that is as clean as can be, short of resorting to a proceeding subsequent to initial registration.

XI. TRANSACTIONS INVOLVING REGISTERED LAND

Certain documents, by various statutes, require the examiner’s approval for filing with the registrar. The statutes require the approval prior to filing, but the common practice is to request, and expect, the approval prior to closing. The lack of approval (i.e., a rejec- tion) should not hold up a closing, at least in the make-believe world that I inhabit. The registrar is typically looking for “the written certification of the examiner of titles as to the legal sufficiency of the documents presented for filing for the purpose of issuance of a new certificate.” Minn. Stat. §§ 508.59, 508.69. The types of documents include:

x Judgment or decree (usually in the context of a marriage dissolution) where the document is being used to divest a fee owner of his or her interest. Minn. Stat. § 508.59

x Trustee’s conveyance, in the context of an inter vivos trust or a testamentary trust.

11 Minn. Stat. § 508.62 x All probate transfers, including deed of sale, deed of distribution, decree of distribution, decree of descent, summary assignment. Minn. Stat. § 508.69 x Acquiring title by action, usually a mortgage foreclosure by action. Minn. Stat. § 508.67, Subd. 2 x Eminent Domain, but only for a fee taking. Minn. Stat. § 508.73, Subd. 1

12 APPENDIX A, sample Certificate of Title Certificate of Title

Certificate Number: 100 Created by Document Number: 12345

Transfer From Certificate Number: 99

Originally registered August 4, 1922 Volume:76, Certificate No: 24531, District Court No: 2274

State of Minnesota ) ) s.s. Registration County of Hennepin )

This is to certify that

John Doe, whose address is 123 Main Street, Minneapolis, Minnesota, 55555 is now the owner of an estate in fee simple

In the following described land situated in the County of Hennepin and State of Minnesota:

Lot 1, Block 1, Blackacre

Subject to minerals and mineral rights reserved by the State of Minnesota;

Subject to the interests shown by the following memorials and to the following rights or encumbrances set forth in Minnesota statutes chapter 508, namely:

1. Liens, claims, or rights arising under the laws of the Constitution of the United States, which the statutes of this state cannot require to appear of record; 2. Any real property tax or special assessment; 3. Any lease for a period not exceeding three years, when there is actual occupation of the premises under the lease; 4. All rights in public highways upon the land; 5. Such right of appeal or right to appear and contest the application as is allowed by law; 6. The rights of any person in possession under deed or contract for deed from the owner of the certificate of title; 7. Any outstanding mechanics lien rights which may exist under sections 514.01 to 514.17.

Memorials Document Date of Filing Number Document Type Month Day, Year Time Amount ($) Running in Favor Of

Indexes Verified through 1/26/2012 IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the seal of my office this 24th day of January, 2012. Martin McCormick, acting Registrar of Titles, In and for the County of Hennepin and State of Minnesota.

Certificate Number: 100 13 Page 1 of 1 APPENDIX B, annotated Certificate of Title Certificate of Title

Certificate Number: 100 Created by Document Number: 12345

Number for current certificate of title for this land Document number assigned to the recorded instrument that caused the registrar to issue this certificate of title, 508.38 Transfer From Certificate Number: 99

All certificates issued subsequent to the first certificate of title shall include the “transfer from number (here give the number of the next previous certificate relating to the same land,” 508.35. The previous certificate of title has now been marked “Canceled” by the registrar, 508.52 Information about the Decree of Registration; filing date, indexing Originally registered August 4, 1922 Volume:76, Certificate No: 24531, District Court No: 2274 information, court file number, see 508.35

REGISTRATION

The word REGISTRATION in the middle of the State of Minnesota ) certificate comes from the form at 508.35. ) s.s. County of Hennepin )

This is to certify that

John Doe, whose address is 123 Main Street, Minneapolis, Minnesota, 55555 Name and residence of the owner, 508.35; and full name and post office address of the grantee, 508.50 is now the owner of an estate in fee simple No lesser estate than a fee simple shall be registered, 508.04, and no new certificate shall be issued upon any transfer of land which does not divest the title in fee simple of the land, or some part of it, 508.49

Where are we? No need to repeat this In the following described land situated in the County of Hennepin and State of Minnesota: language after the plat name.

Lot 1, Block 1, Blackacre The certificate of title shall contain a description of the land, 508.35

The south boundary line of Lot 1 is marked by judicial landmarks set pursuant to Torrens Case No. 2274.

A reference to judicial landmarks is not a “recital”—it becomes part of the legal description, 508.23, Subd. 1a

14 Subject to minerals and mineral rights reserved by the State of Minnesota; This is a “recital” – it starts with the language “subject to” or “together with” and for practical purposes is no more or less significant than a memorial.

Subject to the interests shown by the following memorials and to the following rights or encumbrances set forth in Minnesota statutes chapter 508, namely:

The following “rights or encumbrances” appear as exceptions to title on every certificate, see 508.25

The certificate of title shall by memorial contain a description of all encumbrances, liens, and interests in which the estate of the owner is subject, 508.35

Memorials Document Date of Filing Number Document Type Month Day, Year Time Amount ($) Running in Favor Of

For RecordEASE, all documents recorded up through that date have been posted to Indexes Verified through 1/26/2012 the relevant certificates of title. This is the beginning of the “gap period” – the period of time between 1/26/2012 and today’s date - when documents have been received for filing and have not yet been entered as memorials on the certificate of title.

This signature block is found in the form certificate of title at 508.35. IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the seal of my office this 24th day of January, 2012. Martin McCormick, acting Although the seal does not appear on Registrar of Titles, this mark-up, every registrar of titles shall have an official seal and affix the In and for the County of Hennepin and State of Minnesota. same to all documents requiring the registrar’s official signature, 508.32.

15 Section 2 SECTION 2

Taking the Mystery Out of the Initial Registration Process

Matthew Foli Deputy Hennepin County Examiner of Titles Minneapolis

The Torrens System of Land Registrations from A to Z- August 17, 2016

8/10/2016

Taking the Mystery Out of the Initial Registration Process

InitialRegistrations

Abstract Torrens

Bigpictureoverview

Examiner’s Abstractof Report Title

Application

1 8/10/2016

Success! Default Hearing LandTitle Summons

Preparetheapplication

Whoistheapplicant?

• JohnDoe • AndheismarriedtoJaneDoe

2 8/10/2016

Onespouseintitle, otherspouseadefendant

IstheapplicantaMinnesotaresident?

• JohnDoelivesinIowa

• Forcorporations,onlyentitiesformedin Minnesotaare“Minnesotaresidents”

3 8/10/2016

Page11

WhyTorrenize?

• Breakinchainoftitle

• Gapinlegaldescription

• Lostdeed

WhyTorrenize?

• Mortgagepaid,neversatisfied

• Contractpaid,deedneverreceived

• Partabstract/partTorrens

4 8/10/2016

Preparetheapplication

Legaltheory?

Legaldescription?

Survey?

Torrensparcelsmustfittogether

5 8/10/2016

Countysurveyor’sinspectionreport

Pages12&13

Ordertheabstract

NOT: • Titlecommitment • Titleinsurancepolicy • Attorney’stitleopinion

Satisfactory

5”

6 8/10/2016

Where the bleep is my Report of Examiner!?!

ReportofExaminer

Par.1—Ownershipandlegaldescription

7 8/10/2016

ReportofExaminer

Par.2— Occupancy

ReportofExaminer

Par.3—Mortgages

8 8/10/2016

ReportofExaminer

Par.4— Encumbrances,defects,irregularities

9 8/10/2016

ReportofExaminer

Par.5—Listofdefendants

10 8/10/2016

Locatethedefendants

Pages18Ͳ20

Notverydiligent

11 8/10/2016

Servethelandtitlesummons(p.21)

Prepareaffidavitofdefault(p.22)

12 8/10/2016

13 8/10/2016

¶3

¶ 4(b)

happily

14 8/10/2016

Unhappilymarried

15 8/10/2016

Where the bleep is my Report of Examiner!?!

5”

Table of Contents

Page

I. WARNING: Read instructions before operating ...... 1

II. Prepare the application ...... 1

III. Determine whether to register the boundary lines ...... 3

IV. Order the abstract ...... 3

V. Understand the examiner’s report ...... 4

VI. Locate defendants ...... 5

VII. Serve the land title summons ...... 6

VIII. Present your evidence at the final hearing ...... 6

IX. Know what happens when an answer is filed ...... 7

X. Review other resources ...... 7

Case Study

Application ...... 8

Appointment of agent for non-resident defendant ...... 11

Report of survey and of inspection of premises ...... 12

Title examination worksheet ...... 14

Report of examiner ...... 15

Petition and order for summons ...... 18

Land title summons ...... 21

Torrens affidavit of default ...... 22

Order and decree of registration ...... 23

I. WARNING: READ INSTRUCTIONS BEFORE OPERATING

Here is a basic overview of the complete registration process. Hennepin County has much more detailed instructions, and many more forms, on the county website. If you are practicing in a county other than Hennepin, do not assume that these instructions and forms are acceptable. Pick up the phone, and call the examiner. What are the local practices that are traps for the unwary? You and the examiner will be well acquainted by the final hearing, so start the relationship with a phone call that shows that you mean business.

PRACTICE TIP: If this is your first registration, review a completed file. You don’t have to study it, but just familiarize yourself with the steps, and what the documents look like. It will provide much more context than the blank forms. And, attend a final hearing. There is typically only one hearing in a registration proceeding, so if you are not familiar with the expectations of the examiner, or the court, for the final hearing, go and watch one so you are not taken by surprise.

II. PREPARE THE APPLICATION

Do not have your client sign the application until you have discussed the registration with the examiner of titles. Start the process with a phone call to the examiner. Better yet, schedule a meeting, and bring your whole file. Once you have drafted the application, send it to the examiner for her review. You want the examiner’s buy-in before you get your client to sign the application. You never want to go back to the client to re-execute a document, even if you can blame the examiner of titles for some nit-picky revision.

PRACTICE TIP: If your client/applicant is the sole spouse in title, get the non-titled spouse to assent to the registration. This is allowed by Minn. Stat. § 508.05. Otherwise, “the spouse shall be made a defendant and served with summons.” Id. Quoting from the movie Pitch Perfect, “Aca-Awkward!”

PRACTICE TIP: If the applicant (whether a person or a corporation) is not a Minnesota resident, the applicant must record an agreement appointing a local agent (typically the applicant’s attorney) who can be served with any legal process (like an answer) in the registration proceedings. See Minn. Stat. § 508.07. This agreement should be recorded at the same time as the application. If the applicant is a corporation formed in another state, this statute applies, even if the corporation has a registered agent on file with the Minne- sota Secretary of State.

A. What defect has forced you to register the land?

Some common examples:

A break in the chain of title A gap in the legal description A lost deed The mortgage was paid off, but never satisfied of record

1 The contract for deed was paid off, but the seller never gave a deed Part abstract, part Torrens, future condominium development Part abstract, part Torrens, future development using a registered land survey

B. What is your legal theory?

The application should contain a legal theory in support of your “prayer for relief.” For example, the reason for the registration is a gap caused by poorly drafted legal descriptions. Lot 1 was split into two equal parts, the north half and the south half. The conveyances were for the North 50 feet, and then the South 50 feet. Now, your client owns all of Lot 1, but the lot is actually 101 feet wide. So, the ancient grantor still owns one foot of land in the middle of the lot. If you are not going to reform the deeds, then you are claiming title by adverse possession. So, your legal theory is adverse possession.

C. What legal description do you intend to use?

My nightmare is approving an application with a legal description that either creates a gap with adjoining Torrens property, or creates an overlap with adjoining Torrens property.

Example paragraph from one of my reports: “The metes and bounds legal description used in this proceeding is a boundary description that includes four his- toric parcels. The line specified in the description is more or less the centerline of County Road No. 6. The line was used in the registration of the land lying south of the centerline. Although some of the land to the south has been subdivided, and part is now described as tracts in a registered land survey, by going back to this line in the current proceeding we are sure to have an exact match—no gap or overlap.”

One of the joys of registering title is the opportunity to clean up messy legal descriptions. We are not constrained to follow verbatim the text of a lengthy metes and bounds description, if we can describe the same land in a way that is more pleasing to the eye. For example, the stricken language is never used in a registration proceeding in Hennepin County:

Lot 1, Block 1, Blackacre, according to the plat on file or of record in the office of the County Recorder, Hennepin County, Minnesota.

D. Do you have a survey?

If you do, provide it to the examiner. More information is always better than less information. Chances are that it will get filed with the court administrator.

PRACTICE TIP: Please review the survey before sending it to me. It is your job, as much as mine, to catch mistakes in a registration proceeding.

2 III. DETERMINE WHETHER TO REGISTER THE BOUNDARY LINES

If your client is caught up in a boundary dispute, and two surveyors cannot agree on the location of the common boundary line, then a registration proceeding would allow the court to determine the location of the boundary, once and for all (after exhausting all appeals to the court of appeals, supreme court, U.S. Supreme Court, the Hague, and the Court of Arbitration for Sport). Even if there is not a dispute, but the line is in doubt, you can have the court judicially determine the boundary. It requires an ALTA survey, and eventually the court will order the placement of judicial landmarks, which are more au- thoritative than a surveyor’s iron monument. See Minn. Stat. § 508.671. If the judicial landmark cannot be located sometime in the future, the court can order it to be re-set in the same location as identified in the plat of survey on file with the court administrator.

If you are registering Lot 1, Block 1, Blackacre, and the neighbor’s fence encroaches over one of the lot lines, there may not be a pressing reason to register the boundaries. And, just because the land is described by metes and bounds does not mean the boundaries must be registered. You really need a dispute, or an ambiguous legal description. See, for example, Mattson Ridge v. Clear Rock Title, 824 N.W.2d 622 (Minn. 2012), where the legal description contained a call of “thence South 30 rods to the intersection of road leading from the county road at or near Charles Magnuson’s place in Sunrise City.” Again, quoting from the movie Pitch Perfect, “Aca-Scuse me?”

PRACTICE TIP: If your client is relying on the common law doctrine of practical location of boundaries, then the disputed boundary must be judicially determined. See Minn. Stat. § 508.671.

IV. ORDER THE ABSTRACT

“The applicant shall file with the court administrator, as soon after the filing of the application as is practicable, an abstract of title to the land described in the application, satisfactory to the examiner.” Minn. Stat. § 508.11. It does not say “or other satisfactory evidence of title” or “a title commitment” or a “title insurance policy” or “an attorney’s title opinion.” I am supposed to examine the title to the land, and what I want to review is an abstract of title. In past moments of weakness, Hennepin County allowed the rare title commitment, but the examinations were train wrecks. I understand that there are not many abstractors left, and fewer that are willing to build an abstract from the patent. See if your examiner will accept a 50-year stub abstract of title.

The abstract of title should also contain a search certificate. See Rule 203 of the General Rules of Practice for the District Courts and Title Standard 82 which explains all the searches which are required in the examination of title.

3 PRACTICE TIP regarding submission of the abstract:

WRONG RIGHT

Attorney orders abstract. Attorney orders abstract.

Abstractor prepares abstract. Abstractor prepares abstract.

Abstractor sends abstract directly to Abstractor sends abstract to attorney. examiner, and attorney never sees it. Attorney reviews abstract. Attorney sends abstract to examiner.

The applicant’s attorney is the point person on a registration proceeding. It is your re- sponsibility to review all documents before submitting them to the court. You don’t need to map out the whole chain of title, but if you thumb through the abstract, are there miss- ing entries for documents that you know were recorded?

V. UNDERSTAND THE EXAMINER’S REPORT

Who is my audience? The report is addressed “To the honorable judges of the district court of Hennepin County.” And they never read it. My audience is the applicant’s attorney. My report is always in the same format:

Paragraph 1: Either the applicant was or was not the record owner at the time of filing the application. The applicant was not the record owner, for example, if the applicant claims to have never received a deed from the prior owners. Paragraph 1 also contains the legal description, which I often have slightly tweaked—use the revised legal description from this point forward.

Paragraph 2: Occupants of the land, according to paragraph E of the application, and the county surveyor’s inspection report. Not mentioned yet in these materials is the fact that the Hennepin County surveyor inspects the property for every initial registration case. See Minn. Stat. § 508.14. The county surveyor identifies the occupants and any encroachments, and provides a sketch of the property.

Paragraph 3: Mortgages and other financing instruments, like assignments of mortgage and assignments of leases and rents, and possibly UCC-1 fixture filing statements (otherwise these appear in Paragraph 4.)

Paragraph 4: Broken down into individual paragraphs. You have some interests which the applicant recognizes as encumbering (and perhaps benefiting) the land, like an easement, or a conditional use permit, and those will appear as encumbrances on the first certificate of title. You have other interests that the applicant wants to remove, like a mortgage that was paid off but never satisfied of record. In either situation, even if the interest will remain in place, I recommend someone as a defendant. This paragraph also includes

4 additional abstracting requirements, additional search requirements, and encroachments determined by the county surveyor’s inspection report.

PRACTICE TIP: If the encumbrance will remain, like the shared driveway easement, then I say “The following concluding statement should be contained in the “subject clause” of the decree of registration: * * *.”

PRACTICE TIP: If the encumbrance is going to be removed, like the old satisfied mortgage, I say “There should be evidence at the hearing to support a finding in the decree of registration that * * *.”

VI. LOCATE DEFENDANTS

You must try to find the defendants. I can find most people if I use the Google and have ten minutes free time. If the defendant owed your client money on a judgment, you would try hard to find the defendant. Use the same approach here. You will submit a petition and order for summons, where you have identified each defendant with an address for service of process. Do not presume that a defendant is dead. Even if the person would be 140 years old today, if you cannot find a death record, the person is named as a defendant, and the address is “unknown.” On the other hand, if the defendant is dead, she is no longer named as an individual defendant, since dead people do not accept service of process. (That’s a joke.) In place, you may name as a defendant “the unknown heirs of John Jones, deceased,” but that is beyond the scope of this basic course. Review the Hennepin County instructions, available on-line.

PRACTICE TIP: If the non-resident corporate defendant, for example ABC Corporation, a Delaware corporation, has a local registered agent on file with the Minnesota Secretary of State, just serve the local registered agent. This registration proceeding is a lawsuit dealing with Minnesota issues, and the local registered agent will be happy to accept service. This is easier (but a bit more expensive) then messing around with the corporate address for ABC Corporation. See next practice tip…

PRACTICE TIP: If the non-resident corporate defendant does not have a local registered agent, you must determine the out-of-state business address. HINT: it is not a registered agent address in the state of formation. It is not a registered agent address in any other state in the USA. The correct address is the business headquarters.

PRACTICE TIP: If the non-resident corporate defendant is the mortgagee or lender, use the address on the mortgage.

PRACTICE TIP: If the report of examiner recommends as defendants “the occupants of the adjoining parcel of land, whose names should be ascertained by the applicant’s attorney,” the proper defendants are the actual occupants by their given names. NOT “Occu- pants of land described on Certificate of Title No. 123.” Go determine the names of the occupants, and insert their names in the order for summons.

5 PRACTICE TIP: The petition is executed by the applicant’s attorney.

VII. SERVE THE LAND TITLE SUMMONS

Keep it simple. If the defendant (person or corporation) is located in the State of Minne- sota, you personally serve that defendant. If the defendant is a non-resident (person or corporation), the court administrator mails the land title summons to the out-of-state address. BUT REMEMBER, every initial registration proceeding requires publication of the land title summons, once a week for three weeks. See Minn. Stat. § 508.16.

PRACTICE TIP on consent from a defendant: Minn. Stat. § 508.06 refers to it as an assent, but it means the same thing. If done before the Report of Examiner is issued, the party need not be made a defendant. If done after the issuance of the land title summons, the defendant need not be served. DO NOT dawdle trying to obtain consents from defendants. You are wasting time, and you have lost control of the process. Just plow ahead, even serve the defendant if the land title summons has been issued. You can still use the consent, but you are not delaying the process waiting for one that may not arrive.

VIII. PRESENT YOUR EVIDENCE AT THE FINAL HEARING

At least two people must appear at the final hearing—the applicant and the applicant’s attorney. If the applicants are a husband and wife, only one needs to testify. If the applicant is a corporation, bring an officer or other corporate big shot—but the person must be familiar with the case and familiar with the corporation’s real estate transactions.

Both the applicant and the attorney are sworn in, because both will testify. The attorney testifies from the counsel table, and the applicant testifies from the witness box. I let the attorney prove up the case, ask the applicant the magic questions (see next practice tip), and provide her own testimony. If something is missed, I follow up with questions. The applicant’s attorney may be the appropriate person to testify in support of findings regarding names of heirs of deceased persons, and names of persons occupying a parcel of land or maintaining a structure.

PRACTICE TIP: Introduce yourself to the court, stating your name and the fact that you represent the applicant. If the examiner has not already done so, ask the witness to state his or her name and address. If the witness is an officer or employee of an applicant which is a legal entity, ask the witness to state his or her relationship to the applicant and to state the applicant’s address. In addition to soliciting testimony to establish findings in the order and decree of registration, ask whether the applicant: (a) has sold, mortgaged or otherwise conveyed an interest in the premises since the application was filed; (b) is the subject of a judgment, tax lien, or bankruptcy proceeding not mentioned in the examiner’s report; and (c) is married, single, or involved in a divorce proceeding, if the applicant is a natural person. Offer the filed abstract and other documents into evidence.

6 This is not an inquisition; it should not be an opportunity for the examiner or the court to embarrass the attorney. If you have questions about the process, call the examiner in advance. Sometimes, right before the hearing and in the privacy of my office, I go over the process with the attorney, to make sure he or she is comfortable. Life it short, let’s make sure the final hearing goes smoothly so you can get on with your day…

PRACTICE TIP: When drafting the order and decree of registration, the findings should closely match (if possible) the language used in the report of examiner. There is no need to include as part of the finding all the evidence that supports the finding. This is an exercise in taking the language from the report of examiner, and transferring it to the order and decree of registration. It is not a creative writing exercise.

PRACTICE TIP: Rule 208 of the General Rules of Practice for the District Courts requires that, in counties where the examiner checks the proceedings in advance of the hearings, all of your paperwork (documentary evidence, affidavits of service, proposed order and decree) must be delivered to the examiner at least three business days before the hearing.

IX. KNOW WHAT HAPPENS WHEN AN ANSWER IS FILED

The case has become contested. No more ex parte communications with the examiner of titles. The case is referred to the district court for a trial like any ordinary civil action. See Minn. Stat. § 508.20. The district court may refer the case back to the examiner of titles, to “hear the parties and their evidence,” Id., and issue a recommended report to the court, for adoption. No different than a family court referee hearing the divorce trial. There is no alternative dispute resolution process, and no right to jury trial.

PRACTICE TIP: With no court-ordered ADR, should you abandon all attempts to settle the case? Of course not! You can hire a mediator on your own, or negotiate your own settlement. But the rub is that in the Torrens world, the settlement has to fit into the confines of a certificate of title. Often it is not as simple as a stipulation for dismissal. If you come up with a settlement, make sure to involve the examiner of titles with the mechanics.

X. REVIEW OTHER RESOURCES

x Chapter 508 of Minnesota Statutes x Rules 201 to 222 of the General Rules of Practice for the District Courts x Instructions on-line at the Hennepin County website. Go to www.hennepin.us, enter keywords “Examiner of Titles” and click on “Instructions and forms.”

7 STATE OF MINNESOTA DISTRICT COURT COUNTY OF HENNEPIN FOURTH JUDICIAL DISTRICT OTHER CIVIL: TORRENS No. 27-ET-CV-14-100

In the Matter of the Application of

John Doe APPLICATION

To Register the Title to Certain Land

STATE OF MINNESOTA ) ) ss COUNTY OF HENNEPIN )

TO THE JUDGES OF THE ABOVE-NAMED COURT

Applicant hereby applies to register the title to the land described in this Application and solemnly swears that the contents of this Application are true to the best of Applicant’s own knowledge, except as to those matters stated on Applicant’s information and belief, and that as to those matters Applicant believes them to be true.

A. Name: John Doe Address: 123 Main Street, Des Moines, Iowa, 50301

Applicant is 18 years of age or older and is not under any legal incapacity.

B. Applicant is married to Jane Doe who resides at 123 Main Street, Des Moines, Iowa, 50301.

Applicant has never been divorced, except: [State the date of the divorce decree, the county and state where granted, the court file number and the name of the former spouse; if no divorce strike “except”]

Why do we care? Because maybe the ex-spouse has an interest in the land being registered. Maybe the dissolution proceeding never dealt with the land…

C. Description of land: [For the registration of easements over unregistered land, the fee simple estate to which the easements are appurtenant must also be described]

Lot 1, and that part of Lot 2 lying Northeasterly of a line drawn parallel with and distant 10 feet southwesterly of the northeasterly line of said Lot 2, all in Block 1, Blackacre.

D. Estate or interest claimed in the land is fee simple and is subject to homestead [or] not subject to homestead.

8 E. The land is occupied by Applicant [or] The land is unoccupied [or]

The land is occupied as follows: [State the full name and address of each occupant and the nature of the estate, interest, lien, or charge which the occupant or occupants have, or claim to have, in the land]

F. The land is encumbered by the following liens and interests, recorded or unrecorded: [Describe each lien or interest, recorded or unrecorded, which applicant recognizes as encumbering the land, including the nature of the lien or interest, any information about its recording, and the name of the interested party]

Mortgage in the original amount of $500,000.00 in favor of ABC Bank, a Minnesota corporation, dated October 1, 2013, executed by John Doe and Jane Doe, husband and wife, and recorded on October 30, 2013, as document number 123456789.

G. Applicant seeks a determination terminating or modifying the following liens or interests: [Describe each lien or interest, recorded or unrecorded, for which applicant seeks a determination terminating or modifying the interest, together with the reason for the relief requested, and including the nature of the lien or interest, any information about its recording, and the name of the interested party]

Mortgage in the original amount of $200,000.00 in favor of 123 Mortgage Corporation, a Nevada corporation, executed by John Smith and Sally Smith, husband and wife, on October 31, 1986 and recorded on November 5, 1986 as document number 5180001.

Applicant requests the termination of the interest of 123 Mortgage Corporation. This mortgage was paid off in a closing handled by Best Title Insurance, when John Smith and Sally Smith sold the home in 1992 to John Jones and Mary Jones. The satisfaction of mortgage was not recorded and applicants have been unable to locate any institution willing to issue a satisfaction of mortgage.

H. The title to the land is subject to the following other defects: [Describe the defects and state the reasons for curing them]

NONE

I. Applicant does not wish to fix and establish the boundary lines of the land [or] Applicant desires to fix and establish the ______(for example, north and south) boundary lines of the land: [State the full names and addresses of all owners of adjoining lands, which are in any manner affected]

9 Applicant requests the Court to adjudicate that Applicant is vested with title to the estate or estates in the lands as described in this Application, and that the Court direct the Registrar of Titles to register the same in Applicant’s name, and for such other relief as the Court finds appropriate.

John Doe Applicant's Signature

Subscribed and sworn to before me on January 1, 2014 by John Doe.

Notary Public Notary Seal

OPTIONAL ASSENT OF SPOUSE

I hereby assent to the registration of the above-described land as requested by the Applicant who is my spouse.

Jane Doe Spouse's Signature STATE OF MINNESOTA ) ) SS COUNTY OF HENNEPIN )

This assent was acknowledged before me on January 1, 2014 by Jane Doe.

Notary Public Notary Seal

Attorney for Applicant: Name: Approved for Filing: Address: Telephone: Fax: Deputy Examiner of Titles Attorney Registration No.: Email: ______

10 APPOINTMENT OF AGENT FOR NON-RESIDENT APPLICANT

The undersigned, having made Application for the registration of the title to land in the County of Hennepin, State of Minnesota, described as follows:

Lot 1, and that part of Lot 2 lying Northeasterly of a line drawn parallel with and distant 10 feet southwesterly of the northeasterly line of said Lot 2, all in Block 1, Blackacre. and being a non-resident of the State of Minnesota, does hereby appoint (Applicant’s attorney) whose post office address is 123 First Avenue, Minneapolis, Minnesota 55402, agent for all purposes of the registration of title to said land; and does hereby agree that the service of any legal process in proceedings under and growing out of such Application shall be of the same legal effect when made on said agent as if made on the undersigned within said state.

Date: January 1, 2014 John Doe Applicant

STATE OF MINNESOTA ) ) SS COUNTY OF HENNEPIN )

The foregoing instrument was acknowledged before me this 1st day of January, 2014, by John Doe.

Signature of Notary or other Public Official

Notary Stamp or Seal

11 REPORT OF SURVEY AND OF INSPECTION OF PREMISES

Case No. 27-ET-CV-14-100

STATE OF MINNESOTA DISTRICT COURT COUNTY OF HENNEPIN FOURTH JUDICIAL DISTRICT

In the Matter of the Application of John Doe to register title to the following described land situated in Hennepin County, Minnesota, to-wit:

Lot 1, and that part of Lot 2 lying Northeasterly of a line drawn parallel with and distant 10 feet southwesterly of the northeasterly line of said Lot 2, all in Block 1, Blackacre.

PID ______Address: ______

EXAMINER OF TITLES, Hennepin County, Minnesota.

Dear Madam:

Pursuant to the foregoing request, I have made an inspection of the premises hereinbefore described. My report as to the occupants of the premises and as to the encroachments upon the premises and the names of the owners thereof and of their tenants or agents, if any, occupying or using such encroachments is as follows:

OCCUPANTS OF PREMISES

NAME NATURE OF CLAIM

John Doe and Jane Doe. Applicant and spouse.

(Huh? I thought they lived in Des Moines! Just go with it…)

ENCROACHMENTS

Overhead power lines possibly encroach over the most southerly corner of above described land.

Survey Division, Hennepin County, Minnesota.

I hereby certify that this report was prepared by me and that I am a duly Licensed Land Surveyor under the laws of the State of Minnesota.

Date: ______County Surveyor

12 13 TITLE EXAMINATION WORKSHEET Description posted: ___ Land Description File No. ______Atlas page: ______Abstract certification Sec-Twp-Range: __ Plat (easements, etc.) __ Section map Adjoining registered land - __ Judgments, Bky, Tax liens Existing JLMs: ___ __ Surveyor’s Inspection report Ctf. Nos.: __ Survey (reviewed & filed) DR plat name: __ Application; Doc.No.______

Entry No. Book-page Type Chain of Title Land Description Encumbrances, Doc. No. Grantees Conflicts and Defects Pat.

14 No. 27-ET-CV-14-100

STATE OF MINNESOTA DISTRICT COURT

COUNTY OF HENNEPIN FOURTH JUDICIAL DISTRICT

App. & Last Doc. No. 100200000 N1/2 SE1/4 30-20-10 50B

In the Matter of the Application of

John Doe REPORT OF EXAMINER

To Register the Title to Certain Land.

TO THE HONORABLE JUDGES OF THE DISTRICT COURT OF HENNEPIN COUNTY:

Pursuant to Minn. Stat. § 508.13, the undersigned Examiner of Titles has examined the title of the Applicant to the land described in the Application, investigated the truth of all matters set forth therein, determined whether or not the land is occupied, and, if occupied, the nature therof and by what right the occupation is held, and also whether or not any judgments against the Applicant or those through whom the Applicant claims title may be a lien upon the land described in the Application. I have searched the public records, and fully investigated all facts brought to my notice pertaining to the title, including an inspection report by the County Surveyor. This report to the Court contains the substance of the proof and a Certificate of Opinion upon the title.

1. At the time of the filing of the application herein, the applicant was the record owner, except as herein noted, in fee simple of the land in the County of Hennepin and State of Minnesota described in the application and as follows:

Lot 1; That part of Lot 2 lying northeasterly of a line drawn parallel with and distant 10 feet southwesterly of the northeasterly line of said Lot 2; all in Block 1, Blackacre.

2. According to paragraph “E” of the application, and the county surveyor’s inspection report, on file herein, the land is occupied by the applicant and his spouse, Jane Doe.

15 3. Based on the mortgage, shown at abstract entry 200, the following concluding statement should be contained in the “subject clause” of the decree of registration:

To a mortgage in favor of ABC Bank, a Minnesota corporation, as mortgagee, dated October 1, 2013, and recorded October 30, 2013, as CR Document No. 123456789, to secure the principal sum of $500,000.00.

I recommend as a defendant ABC Bank, a Minnesota corporation.

4. I note the following encumbrances, defects and irregularities:

(a) This registration is caused by a mortgage that has allegedly been paid but a satisfaction has never been recorded. The abstract, and Paragraph “G” of the Application, identify a mortgage, dated October 31, 1986, made by John Smith and Sally Smith, husband and wife, to 123 Mortgage Corporation, a Nevada corporation, recorded November 5, 1986, as CR Document No. 5180001, to secure the principal sum of $200,000.00 (abstract entry 200). Based on the allegations in the Application, there should be evidence at the hearing to support a finding in the decree of registration that the debt secured by the mortgage dated October 31, 1986, made by John Smith and Sally Smith, husband and wife, to 123 Mortgage Corporation, a Nevada corporation, recorded November 5, 1986, as CR Document No. 5180001, to secure the principal sum of $200,000.00, has been paid in full and the mortgage is no longer a lien against the premises. I recommend as a defendant 123 Mortgage Corporation, a Nevada corporation.

(b) As shown at abstract entries 181 and 197, the following concluding statements should be contained in the “subject clause” of the decree of registration:

To Minneapolis City Council Resolution No. 123, granting a variance and a conditional use permit, recorded July 14, 1988, as CR Document No. 5432000.

To Minneapolis City Council Resolution No. 456, granting a conditional use permit, recorded June 12, 1995, as CR Document No. 6587777.

I recommend as a defendant the City of Minneapolis.

(c) The county surveyor’s inspection report notes that overhead power lines possibly encroach over the most southerly corner of the land being registered. There should be evidence at the hearing to support a finding in the decree of registration as to whether the encroachment is maintained as a matter of right or merely at sufferance. If the encroachment is maintained as a matter of right, then an appropriate concluding statement should be contained in the “subject clause” of the decree of registration. I recommend as a defendant Northern States Power Company.

16 (d) The spouse of the applicant has assented to the registration, as part of the application. Therefore, she need not be made a defendant.

5. That the parties defendant in said cause should be:

ABC Bank, a Minnesota corporation 123 Mortgage Corporation, a Nevada corporation City of Minneapolis Northern States Power Company

“also all heirs and devisees of any of the above-named persons who are deceased; and all other persons or parties unknown claiming any right, title, estate, lien or interest in the real estate described in the Application or amendments herein.”

6. That all the material allegations contained in the said application are substantially true, as herein stated, except as hereinbefore found, and that the applicants are entitled to the relief prayed for upon correcting the irregularities and defects above-named.

Respectfully submitted this ____ day of ______, 2014.

Susan Ledray, Examiner of Titles

By______Matthew Foli Deputy Examiner of Titles

17 No. 27-ET-CV-14-100

STATE OF MINNESOTA DISTRICT COURT COUNTY OF HENNEPIN FOURTH JUDICIAL DISTRICT

PETITION AND ORDER FOR SUMMONS

In the Matter of the Application of John Doe to register the title to the real estate in Hennepin County, Minnesota, described in the report or reports of the Examiner of Titles on file herein.

PETITION FOR SUMMONS

Now comes your Petitioner and respectfully shows:

That Petitioner is the attorney for the Applicant;

That an Application for Registration has been filed with the Court, and thereafter, by order of the Court, referred to the Examiner of Titles for Hennepin County;

That the Examiner made and filed a report or reports stating that in the Examiner’s opinion the Applicant has a title proper for registration or; if the report or reports of the Examiner was or were adverse, the Applicant hereby elects to proceed with the registration;

That the Examiner in the report or reports recommended that certain persons be joined as defendants in the registration proceeding, whose names and addresses are listed in the attached ORDER FOR SUMMONS;

That the names of any persons, other than those named by the Examiner, listed in the attached ORDER FOR SUMMONS are known or believed by your Petitioner to have or claim some right, title, estate, lien or interest in the premises described in the report or reports of the Examiner;

That Petitioner has made a diligent effort by reasonable inquiry and search to ascertain the addresses of the persons listed in the attached ORDER FOR SUMMONS and the addresses are as listed in the attached ORDER FOR SUMMONS.

(Attorney for applicant and attorney’s address) (FILING STAMP COURT ADMINISTRATOR)

18 That Petitioner knows of no other persons or parties having, or claiming to have, any right, title, estate, lien or interest in or upon the real property described in the report or reports of the Examiner who should be made defendants; and that Petitioner believes that the persons or parties whose addresses are listed in the attached ORDER FOR SUMMONS as “unknown” are not residents of the State of Minnesota and cannot be found therein.

WHEREFORE, Petitioner requests that a Summons be issued in this proceeding and that the Court enter its Order directing the Court Administrator to issue a Summons, as provided by law, directed to the persons named in the attached ORDER FOR SUMMONS; also to all heirs and devisees of any of the persons named in the attached ORDER FOR SUMMONS who are deceased; and to all other persons or parties unknown claiming any right, title, estate, lien or interest in the real estate described in the Application and any amendments to it.

Petitioner

STATE OF MINNESOTA ) ) SS COUNTY OF HENNEPIN )

______, being first duly sworn, on oath says that she is the attorney for the Applicant named above, that she knows the contents of the foregoing Petition, that the averments thereof are true of her own knowledge, save as to such as are therein stated on information and belief, and that as to those she believes them to be true.

Petitioner

Subscribed and sworn to before me this

day of , 2014.

Notary Public Notary Seal

19 ORDER FOR SUMMONS

Upon examining the foregoing attached Petition and all the files and records in this proceeding:

IT IS ORDERED, that the Court Administrator issue a Summons as required by law directed to the following parties who are hereby named as defendants in this proceeding:

NAME ADDRESS ABC Bank, a Minnesota corporation

123 Mortgage Corporation, Why aren’t there any addresses? Because it is a Nevada corporation not my job to determine the correct address—it is your job. City of Minneapolis

Northern States Power Company

also all heirs and devisees of any of the above-named persons who are deceased; and all other persons or parties unknown claiming any right, title, estate, lien or interest in the real estate described in the Application herein and any amendments to it.

Dated this day of , 2014.

______Judge of District Court

Approved: EXAMINER OF TITLES

By Deputy Examiner

20 No. 27-ET-CV-14-100

STATE OF MINNESOTA DISTRICT COURT COUNTY OF HENNEPIN FOURTH JUDICIAL DISTRICT

LAND TITLE SUMMONS IN APPLICATION FOR REGISTRATION OF LAND

In the Matter of the Application of John Doe to register the title to the following described real estate situated in Hennepin County, Minnesota, namely:

Lot 1; That part of Lot 2 lying northeasterly of a line drawn parallel with and distant 10 feet southwesterly of the northeasterly line of said Lot 2; all in Block 1, Blackacre.

Applicant,

vs.

ABC Bank, a Minnesota corporation; 123 Mortgage Corporation, a Nevada corporation; City of Minneapolis; Northern States Power Company; also all heirs and devisees of any of the above-named persons who are deceased; and all other persons or parties unknown, claiming any right, title, estate, lien or interest in the real estate described in the Application or amendments herein.

Defendants.

THE STATE OF MINNESOTA TO THE ABOVE-NAMED DEFENDANTS:

You are hereby summoned and required to answer the Application of the Applicant(s) in the above-entitled proceeding and to file your answer to the said Application in the office of the District Court Administrator in said County, within 20 days after service of this Summons upon you exclusive of the day of such service, and if you fail to answer the Application within the time aforesaid, the Applicant(s) in this proceeding will apply to the Court for the relief demanded therein.

Witness, District Court Administrator of Attorney for Applicant: said Court, and the seal thereof, at Name: Minneapolis, in said County, this ____ day Address: of ______, 2014. Telephone: By:______Attorney Registration No.: ______Deputy

21 NO. 27-ET-CV-14-100

STATE OF MINNESOTA DISTRICT COURT COUNTY OF HENNEPIN FOURTH JUDICIAL DISTRICT

In the Matter of the Application of AFFIDAVIT OF DEFAULT AND John Doe COURT ADMINISTRATOR’S CERTIFICATE OF NO ANSWER To Register the Title to Certain Land AND AFFIDAVIT OF NON-MILITARY SERVICE IN REGISTRATION OF TITLE PROCEEDINGS STATE OF MINNESOTA ) ) SS COUNTY OF HENNEPIN )

I, ______, being sworn, state that I am the attorney for the Applicant in the above- entitled matter, that I am unable to determine whether those defendants listed in the Order for Summons as parties unknown or of unknown address are in the military service of the United States, but allege that the other defendants listed in said Order and in the Summons are not in the military service of the United Sates and that the Summons in said action was duly served, that more than 20 days have elapsed since the service of said Summons, and that no Answer has been received in this cause, nor have the defendants or any person appeared in any manner whatsoever.

______Signature of Attorney

Subscribed and sworn to before me this ______day of ______, 2014.

______Notary Stamp or Seal Signature of Notary or other Public Official

The undersigned Court Administrator hereby certifies that a diligent search has been made in the records of this office and that no Answer has been filed on behalf of any person.

WITNESS: District Court Administrator of said Court and the seal thereof, at Minneapolis, Minnesota, in said County, this ______day of ______, 2014.

By: ______, Deputy

22 No. 27-ET-CV-14-100

STATE OF MINNESOTA DISTRICT COURT COUNTY OF HENNEPIN FOURTH JUDICIAL DISTRICT

In the Matter of the Application of ORDER AND DECREE John Doe OF REGISTRATION

To Register the Title to Certain Land

The above-entitled matter came on for hearing at the Hennepin County Government Center in the City of Minneapolis, said County and State, before the Examiner of Titles or Deputy Examiner of Titles who has filed a report herein and to whom the matter has been referred to hear the evidence in said cause and report the Examiner’s conclusions, and the Court having considered the Application, the Reports of the Examiner, the evidence adduced by the applicant(s) and being fully advised in the premises, finds:

1. That all the requirements of the law in respect to the Application and any amendments thereto have been complied with and that all of the defendants in this proceeding have been served with process as required by law or have consented to the registration and that no Answer or Notice of Appearance has been filed in this proceeding;

2. That, except as hereinafter provided, none of the defendants named in the Summons and any amendments or supplements thereto, has any right, title, estate, lien or interest in the real estate hereinafter described;

3. That the premises hereinafter described are occupied by Applicant and his spouse, Jane Doe;

4. That the debt secured by the mortgage dated October 31, 1986, made by John Smith and Sally Smith, husband and wife, to 123 Mortgage Corporation, a Nevada corporation, recorded November 5, 1986, as CR Document No. 5180001, to secure the principal sum of $200,000.00, has been paid in full and the mortgage is no longer a lien against the premises; and

(STAMP FOR FEE PAID REGISTRAR OF TITLES) (FILING STAMP, COURT ADMINISTRATOR)

23 5. That the encroachment of overhead power lines over the most southerly corner of the land being registered is maintained merely at sufferance.

NOW, THEREFORE, IT IS HEREBY ORDERED, ADJUDGED AND DECREED, as follows:

1. That a default as to each defendant named in the Summons and any amendments or supplements thereto and all heirs and devisees of any of the persons named therein who are deceased and "all other persons or parties unknown claiming any right, title, estate, lien or interest in the real estate hereinafter described" is hereby entered in the above-entitled action.

2. That John Doe, whose post office address is 123 Main Street, Des Moines, Iowa, 50301, is the owner of an estate in fee simple in land in the County of Hennepin, State of Minnesota, described as follows:

Lot 1; That part of Lot 2 lying northeasterly of a line drawn parallel with and distant 10 feet southwesterly of the northeasterly line of said Lot 2; all in Block 1, Blackacre.

3. That the interest in land be brought under the provisions and operations of Chapter 508, Minnesota Statutes, and all acts amendatory thereof, and that the title thereto be confirmed and registered as provided in and by said act; subject, however:

To any rights or encumbrances which may be subsisting specified in Section 508.25, Chapter 508, Minnesota Statutes, and all acts amendatory thereof.

To a mortgage in favor of ABC Bank, a Minnesota corporation, as mortgagee, dated October 1, 2013, and recorded October 30, 2013, as CR Document No. 123456, to secure the principal sum of $500,000.00.

To Minneapolis City Council Resolution No. 123, granting a variance and a conditional use permit, recorded July 14, 1988, as CR Document No. 5432000.

To Minneapolis City Council Resolution No. 456, granting a conditional use permit, recorded June 12, 1995, as CR Document No. 6587777.

4. That John Doe is 18 years of age or older, is under no legal incapacity and is married to Jane Doe.

Dated: This ____ day of ______, 2014. ______Judge of District Court

Decree entered District Court Administrator this ____ day of ______, 2014, at ______o’clock AM/PM. By______Deputy

24 Section 3 SECTION 3

PhD Level Discussion of Torrens Issues

Matthew Foli Deputy Hennepin County Examiner of Titles Minneapolis

The Torrens System of Land Registrations from A to Z- August 17, 2016

8/10/2016

PhD-Level Discussion of Torrens Issues

Whereisthewordrecital used?

OnlyinonesubdivisionofSection508.70

1 8/10/2016

IsthereferencetoJLMsarecital?

• ThereferencetoJLMsbecomespartofthe legaldescription—itisnotarecital

• Section508.23,Subd.1a

ProceedingsSubsequent

Orderto Examiner’s Show Report Cause Petition

ProceedingsSubsequent

Success! Default Hearing

2 8/10/2016

CPTRegistration

Examiner’s Abstractof Report Title

Application

CPTRegistration

Success! Examiner’s Directive Mailednotice

3 8/10/2016

Seven certificates of title

• First • Combined • Cancelled • CICCT • Residue • CECT • ExchangeCertificate

UncommonSituations

• Acertificateoftitleforaplannedcommunity’s commonelements.Thelegaldescriptionmaybe: • OutlotA,Blackacre,or • TheCommonElementsinCICNo.123,Blackacre,a plannedcommunitylocatedintheCountyof Hennepin.

UncommonSituations

• AnorthͲsouthalley,dedicatedinaplat,isvacated, andthewesthalfisaddedtoonecertificate,andthe easthalfisaddedtoanothercertificate. • Neighbortothewestneedsthefullalley.Neighbor totheeastconveysherportion. • Deedgetsfiled,whatdoestheregistrardo?

4 8/10/2016

UncommonSituations

• Encumbrancesthatonlyaffectthededicatedstreet. • Ifthestreetisevervacated,andaddedtothe certificateoftitlefortheadjoininglot,these encumbrancescomebacktolife. • Registrardoesnotcreatecertificatesoftitlefor nonͲvacatedstreets.

Certificateofplatcorrection—505.174

• NeedcourtordertofileinTorrens

• ProceedingSubsequent

• Firstgetcertificate,thenfilePetition

Vacatedstreets—508.73,Subd.2

• Needexaminer’sdirective

• Fileresolutionvacatingstreet,thenaskfordirective

• StandͲalonelegaldescription

• Sometimesneedcourtorder

5 8/10/2016

Eminentdomain—508.73,Subd.1

• Needexaminer’sdirective(sometimescourtorder)

• FilecondemnationfinalcertificateorquickͲtakeorder, thenaskfordirective

• Doesnotapplytoeasements

• Newcertificateoftitle/residuecertificateoftitle

Judiciallandmarks

Judiciallandmarks—508.671

• Ifsuperimportant

• Initialregistrationorproceedingsubsequent

• CannotadverselypossessTorrensproperty

• CANclaimboundarybypracticallocation

6 8/10/2016

Judiciallandmarks,surveyor’srole

• Whatareyourexaminer’srequirements?

• Locationofboundarylinestiedto“wellͲknownpermanent landmarks”(Section559.25).Readthistomean“section corners.”

• ALTAsurvey?Countysurveyorinput?

Judiciallandmarks,surveyor’srole

• Interlocutoryorder

• SettheJLMs–eitherstoneoriron

• “PlatofSurvey” —alsocalledmemorialplatorJLMsurvey

Judiciallandmarks,attorney’srole

That’swhythey’recalledLEGALdescriptions

7 8/10/2016

LocateexistingJLMs

• FirstgetacopyoftheJLMsurvey

• Thenhavesurveyorgooutinthefield

• Thejudiciallandmarkmayhavebeenoffset!

Subdivisionplatwithtrusteeasdedicator

• Section508.62

• Owner/dedicatoristrusteeofarevocabletrust

• Platneedsexaminer’sapprovalforfiling

Condominiums—Rule222

MustnotincludebothabstractandTorrensland

8 8/10/2016

PlannedcommunitywithcondoͲstyleplat

• CanincludebothabstractandTorrensland

• Legaldescriptionisgoofy

• Documentsmustberecordedinbothoffices

Condominiumsrequireexaminerapproval

• Examiner’sdirective,section508.351,Subd.1

• ExplainswheretofilethedeclarationandCICPlat

• ExplainswhatdocumentstomovetotheCICCT

Exchangecertificate

9 8/10/2016

Exchangecertificate—508.421,Subd.2

• Sameowner,multiplecertificatesoftitle Combineintoonecertificateand“improve”thelegal

• Multiplelegalsononecertificateoftitle Splitlegalsontoseparatecertificates

Finalexamtime

• AbstractandTorrensland • RegisteredLandSurvey,thensubdivisionplat,thencondo • Cityneedstovacatestreet • Partoflandwascondemnedinfee • Currentplat(abstractandTorrens)needsaplatcorrection • TheTorrenspiecealreadyhadtheboundariessetbyJLMs • Theplat/dedicatorisatrustee • TheTorrenspartisonthreecertificatesoftitlewithsameowner

[email protected]

612-348-2520

Table of Contents

Page

I. Definitions...... 1

II. Proceedings subsequent to initial registration...... 4

III. CPT registrations ...... 6

IV. Review of the seven types of certificates of title ...... 7

V. Nine rules that are different for Torrens land ...... 10

I. DEFINITIONS

Abstract Property—also known as unregistered land. Before 1901, all real property in Minnesota was abstract property. Under the abstract system, documents evidencing mar- ketable title may be found in recorded documents or by material outside the recording system.

Abstract of Title—a summary of the material parts of the documents recorded against a particular piece of land. Starts at the patent from the United States government and con- tinues to present day.

Certificate of Possessory Title—it looks like a certificate of title, however this property was registered under Minnesota Statutes Chapter 508A. This is an administrative registration procedure; it is not a judicial proceeding. So, title defects cannot be solved using this process, and if there are title defects, this process is not available. A possessory estate in land is a fee simple estate held by an owner who (1) has been found on examination by the examiner of titles pursuant to section 508A.13 to be the record owner of the land described; and (2) has satisfied the examiner of titles that the owner is in actual or constructive possession of the land. A successful CPT land registration ends with the issuance of a certificate of possessory title, which will “ripen” into a certificate of title after five years. Hennepin County became the first county in the nation to allow possessory title registration when the Hennepin County board of commissioners approved its use on August 1, 1990.

Certificate of Title—the document that identifies the owners and encumbrancers of a specific piece of registered land. (Think: automobile title.) The certificate of title is not “evidence” of title. The certificate of title is the title to the real estate. The certificate of title shall contain the name and residence of the owner, a legal description, a description of the estate of the owner (for example “joint tenants”), and shall by memorial contain a description of all encumbrances, liens and interests which affect the title.

Common Interest Community Certificate of Title—the CICCT. Created for condominiums and planned communities, and it is the “extra” certificate of title that goes along with the certificate of title created for each unit. What gets filed on the CICCT are the documents that affect all the units, for example the CIC Declaration and CIC Plat, the easement granted by the association to the cable company, the association bylaws, and the amendment to the CIC Declaration. Each unit certificate of title contains a reference to the CICCT, and both together make up the title for the unit.

County Recorder—the title of the person in charge of the unregistered (abstract) recording system in each county.

Examiner of Titles—an attorney appointed by the judges of the district court to be legal adviser to the registrar of titles. Issues reports to the court in initial registration proceedings and in proceedings subsequent to initial registration. Acts as fact finder for the dis-

1 trict court and recommends orders to be entered by the court. Provides legal advice to the registrar of titles and assists parties in transactional situations.

Examiner’s Directive—a written directive issued by the examiner of titles, directing the registrar of titles to take some action.

Exchange Certificate—the owner of registered land may request that the registrar of titles exchange her certificate of title for a new one, free from memorials of interests that no longer affect the land. And, land on two or more certificates of title can be combined onto one new certificate of title.

Initial Registration Proceeding—will transfer a title from the recording act system (abstract title) to the registration system (Torrens title). The proceeding is in the nature of a suit against all persons, both known and unknown, who could possibly assert an adverse right. The proceeding requires the participation of the examiner of titles in the county where the land is located. At the end, the court issues an order and decree of registration, and when filed with the registrar of titles, a certificate of title gets issued.

Interlocutory Order—in either an initial registration proceeding, or a proceeding subsequent, it is the court order directing the surveyor to go out and set the judicial landmarks. An interlocutory order does not finally determine a cause of action but only decides some intervening matter pertaining to the cause, and requires further steps. After the judicial landmarks are set, the surveyor prepares a “plat of survey” showing the location of the judicial landmarks.

Judicial Landmark (JLM)—a tool available for marking court-established boundary lines after a lawsuit between adjoining property owners. Under Minnesota Statutes Sec- tion 559.25, judicial landmarks must be stone or iron. The intent is that they are durable and able to be located by others.

Memorials—the list of encumbrances that affect the title, identified by document number, document type, date of filing, and a “running in favor of” column.

Proceeding Subsequent to Initial Registration—a court action seeking some change in the title to registered land. The proceeding requires the participation of the examiner of titles in the county where the land is located. At the end, the court issues an order directing the registrar of titles to take some action.

Recital—on a certificate of title, these are the encumbrances located below the legal description and above the memorials.

Registered Land—the more “sophisticated” name for Torrens land.

Registrar of Titles—the title of the person in charge of the registered land system in each county.

2 Torrens—the last name of the person, Sir Robert Richard Torrens, who first implemented this system of title registration in South Australia as early as the 1850’s. The Minnesota legislature adopted this system in 1901.

Unregistered Land—the more “sophisticated” name for abstract property.

A. Miscellaneous notes based on the definitions.

x Land on a certificate of title can be combined with land on a certificate of possessory title.

x There is no practical difference between a recital and a memorial, meaning one is of no greater value than the other.

x In Minnesota, business entities must be represented by a licensed attorney when appearing in district court. Nicollet Restoration, Inc., v. Turnham, 486 N.W.2d 753 (Minn. 1992).

x An examiner’s directive is for situations that do not require a factual determination. A proceeding subsequent is required for situations that require the court to make a factual determination.

x Think: county recorder/unregistered land/abstract land/abstract of title

x Think: registrar of titles/registered land/Torrens/certificate of title

x The county recorder and registrar of titles are physically the same person, however the records are indexed differently.

x Documents recorded in abstract are delivered to the county recorder. Docu- ments recorded in Torrens are delivered to the registrar of titles.

x Think of all the land in the county as pieces of a puzzle. The puzzle pieces have to fit together. When the owner wants to register the title, we don’t want to create a gap or overlap with adjoining Torrens land. So the legal description in the new registration may be changed to match what has already been registered. Since the court will ultimately adjudicate that the applicant owns this land with the new description, we can do this.

3 II. PROCEEDINGS SUBSEQUENT TO INITIAL REGISTRATION

A. What matters require a proceeding subsequent?

x A new certificate of title after mortgage foreclosure by advertisement under Minn. Stat. § 508.58, Subd. 1; x Determination of boundaries under Minn. Stat. § 508.671; and x Determination as to the validity of a claim of unregistered interest filed under Minn. Stat. § 508.70, Subd. 1.

Other matters to be adjudicated in a proceeding subsequent are described in general terms in Minn. Stat. § 508.71, Subd. 2, and include the following examples: x Reforming documents; x Adjudicating the validity of a copy of a lost document; x Determining that a contract for deed was paid off where no deed was obtained from the vendor; x Adjudicating the termination of an interest such as a mortgage, lease or easement; and x Adjudicating the validity of a contract for deed cancellation.

If an examiner cannot issue a directive, or approve or certify a transfer, then the following matters require a proceeding subsequent: x Common interest community declaration, Minn. Stat. § 508.351, Subd. 1; x Foreclosure by action, Minn. Stat. § 508.58, Subd. 2; x Marriage dissolution, Minn. Stat. § 508.59; x Trustee’s plat or conveyance, Minn. Stat. § 508.62; x Tax lien forfeiture, Minn. Stat. § 508.67, Subd. 1; x Probate transfers, Minn. Stat. § 508.69; x Eminent domain, Minn. Stat. § 508.73, Subd. 1; and x Adding a vacated alley or street to the legal description on the certificate of title, Minn. Stat. § 508.73, Subd. 2.

B. What are the steps in a proceeding subsequent?

The proceeding is commenced by filing a petition with the district court. Ex- aminer’s approval of the petition prior to filing the petition with the court administrator is not required. A certified copy of the petition may be filed with the registrar of titles, posted to the applicable certificate of title, and will act as a lis pendens. Minn. Stat. § 508.71, Subd. 2.

x The petition may be filed by any party in interest. Rule 213, Minn. Gen. R. Prac. x Rule 213 sets forth the requirements for the petition. The petition is signed by the attorney, or, if the petitioner is not represented by an attorney, by the petitioner. Rule 11.01, Minn. R. Civ. P. The petition is verified by the petitioner.

4 Rule 213, Minn. Gen. R. Prac. The petitioner’s attorney may verify the petition, if the verification contains the statement required by Minn. Stat. § 544.15(3).

The examiner of titles issues a report to the court. The report contains required findings to support the relief requested in the petition. The report also includes a proposed order directing the registrar of titles to make changes to the certificate of title. And the report lists the persons who should be joined as respondents. De- pending upon the level of participation of the examiner in a particular county, it may be appropriate to direct to the examiner, who issued the report, questions regarding jurisdiction over parties and evidence required to support findings to be made by the court.

An order to show cause or land title summons is issued (by the district court) and served (by the petitioner’s attorney) on parties named in the report of examiner. The order to show cause is the most frequently used form of process for proceedings subsequent. It tells the respondent to appear at the hearing to ob- ject. Carefully read and follow the order to show cause which designates the manner of service and the time within which service must be made. The manner of service and the time frames stated in the order to show cause control over the rules of civil procedure. In some situations, the report of examiner may require a land title summons, rather than an order to show cause, such as a proceeding under Minn. Stat. § 508.671, Subd. 1, to determine boundary lines. Service requirements are strictly enforced in proceedings subsequent and jurisdiction over necessary parties is critical to successful completion of the proceeding.

A hearing is held, after which the court issues its order. Any final order or decree in such proceeding shall be approved as to form by the examiner before presentation to the court. Rule 215, Minn. Gen R. Prac. Evidence in the form of oral testimony may be presented at the hearing to support findings of fact contained in the proposed order. In some counties, if an evidentiary affidavit has been filed in the court file before the hearing, oral testimony may not be required and it may not be necessary for the petitioner or the petitioner’s attorney to appear at the hearing.

A certified copy of the order is filed with the registrar of titles. Upon successful conclusion of the hearing, once a judge has signed the order and the order is filed in the court file, a certified copy of the order should be provided to the registrar of titles for recording of the order on the certificate of title and for further action by the registrar of titles as directed in the order. x If the hearing cannot be successfully completed because a party has filed an answer, the case is referred for trial. Minn. Stat. § 508.20.

5 III. CPT REGISTRATIONS

A. What are the steps in a CPT registration?

x The attorney submits an application to the examiner of titles. Minn. Stat. § 508A.06 sets out the contents of the application. The original application gets recorded with the county recorder. Minn. Stat. § 508A.11, Subd. 1.

What’s different than a full registration? There is no court file. You are not recording a certified copy of a court document. Once recorded, get a certified copy of the recorded application from the county recorder and provide it to the examiner of titles. Id.

x The attorney submits an abstract of title and the search certificate. Minn. Stat. § 508A.11, Subd. 2.

x The examiner examines the title and issues a report, identifying the encumbrances that will be shown on the first certificate of title, and the parties entitled to notice. Minn. Stat. § 508A.13.

What’s different than a full registration? No county surveyor’s inspection report. The end result is a registration subject to rights of parties in possession. So we don’t care about the neighbor’s fences, or the overhead utility lines.

x The examiner will send the report and a certificate of mailing to the attorney. The attorney enters the addresses (of the persons identified in the examiner’s report as holding any right, title, estate, lien or other interest in the property) on the certificate of mailing and returns it to the examiner’s office along with stamped envelopes addressed to such persons, using the examiner of title’s address as the return address. If the address of any person entitled to notice cannot be ascertained after a due and diligent search, the attorney must certify that fact.

x The examiner’s office will prepare and mail a notice of application for certificate of possessory title. Minn. Stat. § 508A.13, Subd. 5. The notice will state that the applicant has applied to register possessory title to the land described in the notice, subject only to the rights, titles, estates, and liens listed in the notice, and that the person receiving the notice has 20 days to make a valid written objection. The examiner will complete an affidavit of mailing.

What’s different than a full registration? No publication. No personal service of process. Just mailed notice, and a 20-day waiting period.

If any objection to the registration is made to the applicant, the applicant’s attorney or the examiner’s office, the registration will not proceed unless the ob-

6 jection is withdrawn. The applicant may convert the possessory registration to a full registration to address the objection.

x If no objection has been made within 20 days after the notice was mailed, the examiner will send the attorney a form affidavit (to be verified by the applicant) calling for disclosure of any recent matters affecting the land, such as judgments or conveyances. When the attorney returns the completed affidavit, the examiner will issue a directive to the registrar of titles to issue the first certificate of possessory title in the name of the applicant, subject only to the exceptions set out in Minn. Stat. § 508A.25, memorials of outstanding interests, and a memorial of the examiner’s directive.

x The examiner shall deliver the abstract of title to the registrar of titles who shall retain it. Minn. Stat. § 508A.22, Subd. 1.

B. Effect of CPT registration.

x No action affecting the title to or possession of the land, based on an interest created before the entry of the first CPT, may be commenced unless a notice of lis pendens is filed within 5 years after the date of the first CPT. Minn. Stat. § 508A.17, Subd. 1.

x A CPT will change over to a regular certificate of title when 5 years have elapsed from the date the CPT was issued. Minn. Stat. § 508A.85. The memorial of the examiner’s directive will continue to be carried forward onto future certificates of title. Minn. Stat. § 508A.22.

IV. REVIEW OF THE SEVEN TYPES OF CERTIFICATES OF TITLE

First certificate of title—Section 508.34 Cancelled certificate of title—Section 508.52 Residue certificate of title—Section 508.52 Exchange certificate—Section 508.421 Combined certificate of title—Section 508A.422 Common interest community certificate of title—Section 508.351 Common elements certificate of title— See 2001 Minn. Laws ch. 50, § 4.

When the court administrator files a certified copy of the decree of registration with the registrar of titles, the registrar then issues the first certificate of title. The term “certificate of title” includes all memorials and notations on the certificate. When a deed of conveyance is recorded with the registrar of titles, the registrar cancels the outstanding certificate of title and issues a new certificate of title to the grantee. The “old” certificate of title shall be marked “Canceled” by the registrar. If the deed in fee is for a portion of the land described on the certificate of title, the registrar shall enter a new certificate of title to the grantee for the portion of the land conveyed and issue a residue certificate of title to the grantor for the portion of the land not conveyed.

7 If the fee owner has a messy certificate of title, with lots of memorials that no longer affect the title (e.g., mortgage/satisfaction, mechanic’s lien/satisfaction, lis pendens/discharge, UCC-1 more than five years old, a judgment more than ten years old), the owner can ask the registrar of titles to issue an exchange certificate free from the memorials of all interests that have terminated. Or, if the fee owner owns land on multiple certificates of title (e.g., Lot 1 on one certificate, and Lot 2 on another certificate, and the two lots are now one tax parcel), the owner can request the registrar to issue a single certificate of title for all the land. This is also considered an exchange certificate.

If the fee owner has a certificate of possessory title for Lot 1, and a certificate of title for Lot 2, the owner can request the registrar to issue a combined certificate of title for both lots. The new certificate of title contains a memorial that notes that part of the land was registered under Chapter 508A.

Document Document Date of Filing Running in Favor of Number Type Month Day Year Time

T5355975 Examiner’s June 20, 2016 Subject to the rights of persons in CPT Directive 8:59 AM possession, if any, and any rights which would be disclosed by a survey, except as such rights are limited by Minn. Stat. § 508A.02, subdivision 1.

This Certificate of Title is also a CPT as to the land(s) described herein included in the Examiner’s CPT Directive shown by memorial on this Certificate of Title and those land(s) are subject to any claims that may be made pursuant to Minn. Stat. § 508A.17 within five years from the date of the First CPT.

The common interest community certificate of title, which replaced the common elements certificate of title, is covered next.

A. What is a CICCT?

The answer is found at Minn. Stat. § 508.351. Upon the recording of a declaration creating a condominium or a planned community under the Minnesota Common Interest Ownership Act, Minnesota Statutes Chapter 515B, the registrar of titles shall issue a certificate of title, designated as a “common interest community certificate of title,” the “CICCT.” The form of the CICCT is shown in the statute.

8 CICCTs must be maintained in the same manner as provided for certificates of title.

According to legend, a fact finding mission to the registrar’s office in Edmonton, Alberta by a former Hennepin County Examiner and a former Hennepin County Recorder, revealed the use of “an additional sheet” where the registrar would post the memorials of the documents that affected all the condominium units. The purpose of the additional sheet is to keep the unit certificate focused on the encumbrances for that unit alone, with a note to go look at the additional sheet for the instruments that affect all the units.

So, in 2001, the Minnesota legislature created the Common Elements Certificate of Title, the “CECT,” and it only applied to condominiums. 2001 Minn. Laws, ch. 50, § 4. In 2009, the legislature expanded its use to planned communities, and also changed its name. 2009 Minn. Laws ch. 30, art. 2, §1. Since a planned community with common elements will have a separate certificate of title for the common elements, the old name no longer made sense.

Minn. Stat. § 508.351, Subd. 4, provides:

Certificates of title issued for units described in the declaration, and for common elements described in the declaration for a planned community, must contain a statement in substantially the following form: “subject to encumbrances, liens, and interests noted on CICCT No. ______.”

The italicized language above (and in the next paragraph) indicates that there will be a separate certificate of title for the common elements of a planned community. Immediately after recording the planned community declaration, the declarant shall record a conveyance of the common elements subject to that declaration to the association. Minn. Stat. § 515B.2-101(a)(3). The land described on the certificate of title created by the recording of that deed may be Outlot A, Blackacre, if the declaration identifies the outlot as a common element. Or, the land described on the certificate of title may be “The Common Elements in CIC No. 123, Black- acre, a planned community located in the County of Hennepin” if the common elements are not identified by a separate legal description.

Certain instruments must be entered as memorials on the CICCT only. Minn. Stat. § 508.351, Subd. 5. These include the condominium or planned community declaration, bylaws, any amendment to the declaration or bylaws, any supplemental declaration, and any instrument evidencing the transfer of special declarant rights. Id. The entry of a memorial on the CICCT shall have the same effect as if the memorial was entered on the certificates of title for the unit in the common interest community and on the certificates of title for the common elements in a planned community. Id.

9 If an instrument, like a fixture filing statement or mechanic’s lien, encumbers the common elements in a condominium, it gets entered as a memorial on the CICCT. If an instrument encumbers the common elements in a planned community, it gets entered as a memorial on the certificate of title for the common elements in that planned community.

V. NINE RULES THAT ARE DIFFERENT FOR TORRENS LAND

A. Certificate of plat correction.

This cannot be filed with the registrar of titles without first obtaining a court order. The court must order the registrar of titles to accept for filing a certificate of plat correction. This is based on a Minnesota Attorney General opinion issued January 7, 1956. The procedure is as follows:

1. Prepare the certificate of plat correction. Have it go through the approval process just as you would if the plat were only abstract land.

2. Keep the original certificate of plat correction. Do not lose it!

3. The petitioner files a petition in a proceeding subsequent to initial registration and requests that the court issue an order directing the registrar of titles to accept for filing the certificate of plat correction. The court order must tell the registrar how to show the correction on the certificates of title.

B. Vacated streets.

“Upon the filing of a certified copy of a resolution or ordinance of a city vacating an adjoining street or alley that was dedicated to the public in a plat, a registered owner is entitled to have added to the legal description on the certificate of title that part of the vacated street or alley that accrues to it, provided the vacation oc- curred after the land was originally registered. The vacated street or alley may be added to the certificate of title by order of the district court or by a written directive from the examiner of titles.” Minn. Stat. § 508.73, Subd. 2.

1. The city vacates the street.

2. The city council resolution gets filed with the registrar of titles and memorialized on the certificate of title.

3. A request is made to the examiner of titles to issue a directive adding the vacated street to the legal description.

4. The description is written as a stand-alone parcel.

10 We don’t say:

Lot 1, Block 1, Blackacre, together with that part of Smith Avenue that accrues to said lot by reason of vacation.

Instead, we say:

Lot 1, Block 1, Blackacre.

That part of vacated Smith Avenue, dedicated in the plat of Blackacre, lying northerly of the centerline of said avenue, and between the southerly extensions of the east line and of the west line of Lot 1, Block 1, said plat.

5. A court order is required if we need to adjudicate who gets the vacated street. For example, on a cul-de-sac.

C. Eminent Domain.

If the land of the registered owner is taken in fee, a new certificate of title may not be entered except by order of the district court or upon the written certification of the examiner of titles as to the legal sufficiency of the final certificate or quick-take order. This does not apply to easements. If an easement is the interest condemned by the city/county/state, then the final certificate or quick-take order gets memorialized on the current certificate of title.

For a fee taking:

1. The condemning authority goes through all the regular steps to condemn the land, just as if the land were abstract.

2. Record a certified copy of the document used to transfer title (either the quick-take order or the final certificate).

3. Request that the examiner of titles certify that the eminent domain proceedings were legally sufficient to transfer title, and direct the registrar of titles to cancel the current certificate and issue a new one to the condemning authority for that part of the land taken in fee, with a “residue certificate” issued to the fee owner for that part not taken in fee.

4. The process of obtaining a new certificate of title in the name of the condemning authority is the last 5 percent of the case that never gets done. The last two I saw (in 2015) were for a city’s fee take from 1959, and the state’s fee take from 1992.

D. Locating Judicial Landmarks.

11 1. The legal description on the certificate of title reads as follows:

Lot 1, Block 1, Blackacre The west boundary line has been set by judicial landmarks in Torrens Case No. 12345.

2. The certificate of title may contain a memorial of the “plat of survey” and the document name may be “memorial plat.” If you do not see this memorial, then order the court file and obtain a copy of the plat of survey which will be found in the court file.

3. Once you have a copy of the plat of survey, you can see where the JLMs were originally set. Note: They may not have been set on the lot corners! Perhaps they were offset for some “good” reason.

E. Recording a plat executed by the trustee of a revocable trust.

Facts: The property is Torrens, the owner is the trustee of a revocable trust, and the owner is platting the land.

This plat requires the approval of the examiner of titles. Under Minn. Stat. § 508.62:

No instrument executed by an owner whose fee title to registered land is held in trust which transfers or plats the land, shall be registered except upon the written certification of the examiner of titles * * *.

F. A condominium cannot include both abstract and Torrens land.

This is a recording/indexing issue. The condominium unit, which is essentially a box of air, cannot be both abstract and Torrens. You are forced to file the condominium declaration, the deed, and the mortgage, in only one spot. It can be all abstract, or all Torrens. It cannot be both. This requirement comes from Rule 222 of the Minnesota general rules of practice for the district courts.

G. A planned community, using a condominium-style plat, can include both abstract and Torrens land.

A planned community can include both abstract and Torrens land. If the planned community is single family homes, and the CIC plat is the subdivision plat, you know how to handle this. However, if the CIC plat is a condominium-style plat, the recording of documents can get messy.

You may own Unit 1, CIC No. 1000, The Lofts on Main Street, a planned community located in Hennepin County.

12 But your certificate of title reads as follows:

That part of Unit 1, CIC No. 1000, The Lofts on Main Street, a planned community located in Hennepin County, which lies within Lot 1, Block 1, Blackacre.

And every document affecting that unit must be recorded in both offices.

H. All condominiums affecting Torrens land must be approved by the examiner of titles before recording.

This requirement is not found in Minnesota Statutes Chapter 515B. It is found in the Torrens Act, Minn. Stat. § 508.351, Subd. 1:

Prior to recording with the registrar of titles of a declaration or bylaws of a condominium, or an amendment to the declaration or bylaws, or a supplemental declaration pursuant to section 515B.2-111, a determination must be made by an order of the court in a proceeding subsequent to initial registration or by a written directive of the examiner of titles that the documents comply with the requirements of the applicable condominium statute.

The examiner of titles issues a directive telling the registrar of titles where to file the condominium declaration and CIC plat, and what to move over to the common interest community certificate of title (CICCT).

I. Land on multiple certificates of title, with a common owner, can be combined into one new certificate of title, and the legal description may change for the better.

1. You have been asked to assist in preparing a plat.

2. The legal description of the land is found on five certificates of title:

Certificate of Title Legal Description Tract A, Registered Land Survey No. 100 No. 2, Hennepin County, Minneso- ta Tract B, Registered Land Survey No. 101 No. 2, Hennepin County, Minneso- ta Tract C, Registered Land Survey No. 102 No. 2, Hennepin County, Minneso- ta

13 Tract D, Registered Land Survey No. 103 No. 2, Hennepin County, Minneso- ta Tract E, Registered Land Survey No. 104 No. 2, Hennepin County, Minneso- ta

3. The registrar of titles can cancel the five certificates of title, and issue one new one. Here is the result:

Certificate of Title Legal Description Tracts A, B, C, D, and E, Regis- No. 200 tered Land Survey No. 2, Henne- pin County, Minnesota

4. The fee is $20 to cancel a certificate of title, and $20 to issue a new one. Don’t quote me on this price check. The take-away is that an exchange certificate is chump change.

5. There may be times when you want to split the land onto two certificates of title, and you can do that, too.