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The Torrens System of Land Registrations from a to Z

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The Torrens System of Land Registrations from a to Z The Torrens System of Land Registrations from A to Z To access PowerPoint slides and other seminar resource material: http://www.minncle.org/eAccess/1014021701/index.htm Minnesota Continuing Legal Education 2550 University Avenue West, Suite 160S Saint Paul, Minnesota 55114 (651) 227-8266 • (800) 759-8840 August 2016 http://www.minncle.org 1402-17 Minnesota CLE’s Copyright Policy Minnesota Continuing Legal Education wants practitioners to make the best use of these written materials but must also protect its copyright. If you wish to copy and use our CLE materials, you must first obtain permission from Minnesota CLE. Call us at 800-759-8840 or 651-227-8266 for more information. If you have any questions about our policy or want permission to make copies, do not hesitate to contact Minnesota CLE. All authorized copies must reflect Minnesota CLE’s notice of copyright. MINNESOTA CLE is Self-Supporting A not for profit 501(c)3 corporation, Minnesota CLE is entirely self-supporting. It receives no subsidy from State Bar dues or from any other source. The only source of support is revenue from enrollment fees that registrants pay to attend Minnesota CLE programs and from amounts paid for Minnesota CLE books, supplements and digital products. © Copyright 2016 MINNESOTA CONTINUING LEGAL EDUCATION, INC. ALL RIGHTS RESERVED Minnesota Continuing Legal Education's publications and programs are intended to provide current and accurate information about the subject matter covered and are designed to help attorneys maintain their professional competence. Publications are distributed and oral programs presented with the understanding that Minnesota CLE does not render any legal, accounting or other professional advice. Attorneys using Minnesota CLE publications or orally conveyed information in dealing with a specific client's or other legal mat- ter should also research original and fully quoted sources of authority. 2016–2017 Minnesota Continuing Legal Education Board Members Irene W. Kao, Chair Daniel K. Lew Saint Paul Duluth Eric T. Cooperstein Thaddeus R. Lightfoot Minneapolis Minneapolis Charles A. Delbridge Former Chief Justice Minneapolis Eric J. Magnuson Minneapolis Jacqueline A. Dorsey 1RUWK¿HOG Michelle A. Miller Fridley Dyan J. Ebert Saint Cloud Sonia Miller-Van Oort Minneapolis Professor Morgan L. Holcomb Saint Paul Professor Joel A. Nichols Minneapolis Bryan D. Huffman Saint Paul Professor Jean M. Sanderson Minneapolis Jason C. Kohlmeyer Mankato Michael W. Unger Minneapolis EXECUTIVE DIRECTOR Jeffrey H.A. Johnson The Minnesota CLE Board consists of practicing attorneys and Judges from throughout Minnesota as well as one representative from each Minnesota law school. This provides representation of the interest and efforts of the bench, practicing bar and academic community. Minnesota Continuing Legal Education is a non-profit 501(c)(3) organization. Minnesota CLE receives no subsidy from Bar dues or any other source. The only source of support is revenue from program tuition and publication sales. The basic ingredient in Minnesota CLE’s success is the involvement of the very best Minnesota lawyers from the practicing bar, bench and academic community. These dedicated individuals have given generously of their time and talent to make Minnesota CLE courses and its publications what they are today. 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 13 RightsofRegisteredOwners • Freefromallencumbrancesexceptwhatison thecertificate • Sevenstandardexceptionstotitle • Nodifferencebetweenmemorial/recital 15 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 9 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 lo- cated. 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 pur- pose of the Torrens system was to create a title registration proce- dure intended to simplify conveyancing by eliminating the need to examine extensive abstracts of title by issuance of a single certifi- cate 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
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