Real Estate Conveyance and Recording Procedures

MCRA Summer Conference MCRA Summer Conference June 12, 2018 Ruttger s Bay Lake Lodge

Torrens Basics Torrens Basics Kimberly Brzezinski St. Louis County Examiner of Titles BrzezinskiK@StLouisCountyMN.gov Kathy Conlon Nicollet County Recorder Kathy.Conlon@co.nicollet.mn.us Wayne Anderson Ramsey County Examiner of Titles Wayne.Anderson@co.ramsey.mn.us Robert Russell Otter Tail County Examiner of Titles Robert@russelllawoffice.com Doug Hansen Crow Wing County Recording Supervisor Doug.Hansen@crowwing.us David J. Meyers Sherburne, Mille Lacs, Roseau, Kittson, Marshall and Wilkin County Examiner of Titles Dmeyers@rinkenoonan.com

NOW AVAILABLE FREE! Title Standards White Pages Legal Description Guidelines The public access point is: www.mnbar.org/MNtitlestandards OR www.mnbar.org/MN-Title-Standards

Does a conveyance from grantor to grantee, subject to a life estate in favor of a third party, properly create a life estate in favor of the third party? What does the Registrar do with this deed? Kim

QUESTION? QUESTION? We had an assignment and assumption of lease agreement that was signed by and notarized for lessee and lessee s assignee. Attached was a consent signed by lessor, but the consent was not notarized. We ve always had a general policy that all signatures must be notarized. I know that there is a statute saying that in order to be recordable documents must be signed and acknowledged as required by law. Are you aware of any other statute or authority that either supports or negates our requirement that the consent in this case be notarized? Doug

ANSWER: ANSWER: Minnesota Statute 386.39 supports your requirement that the county recorder shall not record any conveyance mortgage, or other instrument by which any interest in real estate may be in any way affected, unless the same is duly signed, executed and acknowledged according to law. However, since the signed consent is an attachment and the body of the assignment of lease does not reference the consent I would not reject for that reason alone. I would make a courtesy call to the drafter and make them aware the consent signature was not acknowledged and if they would like to record as is . (Reference: M.S. 358.41, M.S.358.50) Doug

How are conveyances by 315 How are conveyances by 315 Religious Corporations handled? Religious Corporations handled? Although there is no specific statutory requirement for Although there is no specific statutory requirement for Examiner approval, these are often complex and technical Examiner approval, these are often complex and technical transactions undertaken by individuals that are not well transactions undertaken by individuals that are not well- - versed in conveyancing requirements. versed in conveyancing requirements. The Examiner of Titles reviews the conveyance document The Examiner of Titles reviews the conveyance document and supporting documents to verify that the statutory and supporting documents to verify that the statutory requirements have been satisfied. Most important among requirements have been satisfied. Most important among these is determining the statutory section that governs the these is determining the statutory section that governs the particular entity by reviewing its articles of incorporation. particular entity by reviewing its articles of incorporation. This is not required for entities that are organized under This is not required for entities that are organized under Chapter 317A. Chapter 317A. Wayne Wayne

Owner redeems during owners redemption period after mortgage foreclosure and then sells. What documents may be dropped after a Creditor Redemption following mortgage foreclosure sale? David

A and B, husband and wife, grant a mortgage in property and then convey an undivided one-half interest in the property to themselves as trustees, without any further reference to the trust being provided. A modification of mortgage is received signed by A, B and lender, without reference to A and B as trustees. A. Is the modification valid? Should it be filed? See Minn. Stat. 507.35 B. Would it make any difference if the transfer was to them as trustees, with reference to the name and the date of the trust? C. What should the Registrar do when land has been put into a trust by a husband and wife and then a subsequent document comes in signed by the husband and wife with no reference to them as trustees? Bob

Is it necessary to record a resolution along when there is a conveyance by a city and/or economic development authority? Kim

Does a resolution from a city affecting Torrens land have to identify the current owners of that land by name or can the owners be generically identify as the owners or some other terms so there are no issues with recording the resolution in case the land changes hands before the documents are recorded? Kim

What rules apply when dealing with typographical errors in legal descriptions? A. A. Example 1: Example 1: Lot Seven (7), Block Thirty (3) difference if there are only 20 Blocks in the plat? Thirty (3), PLAT. Does it make a B. B. Example 2: Example 2: "thence South 360 (should have been 36 based on historical descriptions and other calls) 360 08' West a distance of 228 feet." C. C. Example 3: Example 3: "thence North 19 degrees 48.00 feet distance of 6.00 feet." (should have been minutes and seconds) feet 50.00 inches inches East a Kim

Owner wishes to plat Abstract and adjoining Torrens in a single plat. Some lots will be part abstract and Torrens. IS THIS PERMITTED? David

A modification of mortgage was received which added registered property to the mortgage that originally had only pertained to abstract property. A. Should the Registrar add the original mortgage as a memorial to the Certificate of Title? Charge for doing so? B. If a partial release comes in referring only to the registered property, is it sufficient if it only refers to the recording information for the modification of mortgage? Bob

QUESTION: QUESTION: A developer wants to file and amendment to a CIC plat. The purpose of the amendment is to reallocate a limited common element (part of a driveway and yard) to a common element. Under 515B.2-109 (f), the allocation can be changed by an amendment to the declaration executed by the unit owners affected and the association. I originally thought that the mortgagee holding a mortgage encumbering the affected units should consent as well since their interest is being affected, but the statute doesn t appear to require it. Would you require lender consent (let me also tell you the developer, of course, does not want to obtain lender consent because the bank is Wells Fargo and we ll never get through to anyone who knows anything ). Doug Doug

ANSWER: ANSWER: I am only aware of 505.021 subdivision 3. which requires a mortgagee holder of record of the land being platted shall appear on the plat or consent to the plat by a written acknowledged statement. The declaration may require a mortgagee holder consent but nothing statutorily that I am aware of and therefore I would not require a lender consent. Doug

Husband and wife grant a mortgage in property and then convey an undivided one-half interest in the property to their respective trusts. A modification of mortgage is received signed by the husband and wife, without reference to them as trustees. A. Is the modification valid? B. Should it be filed? C. What should the Registrar do when land has been put into a trust by a husband and wife and then a subsequent document comes in signed by the husband and wife with no reference to them as trustees? Bob

Does the spouse of a married individual who is the sole person in title need to execute a plat? Kim

Should an easement encumbering abstract property that benefits Torrens property be memorialized on the COT? What if the easement encumbers another piece of Torrens property? What if the easement encumbers Torrens land but benefits abstract property? Kim

Bank filed corrective mortgage to show correct legal description. Can a memorial of the first, defective mortgage be dropped when a new certificate is issued if the mortgage is still outstanding? Bob

QUESTION: QUESTION: Certificate of Title is in the name of Donna Certificate of Title is in the name of Donna Baker, single. A subsequent POA identifies Baker, single. A subsequent POA identifies the principal as Donna Baker the principal as Donna Baker- -Billick; a subsequent deed identifies the grantors as subsequent deed identifies the grantors as Donna Baker Donna Baker- -Billick a/k/a Donna Baker and Billick a/k/a Donna Baker and Brian Billick, married to each other. Is an Brian Billick, married to each other. Is an explanation of the name variance and explanation of the name variance and change in marital status required? change in marital status required? Billick; a Wayne

ANSWER: ANSWER: No. Pursuant to Title Standard 54 because the No. Pursuant to Title Standard 54 because the name change is noted in the deed and includes name change is noted in the deed and includes both the current name (which incorporates the both the current name (which incorporates the former name) and the former name (I would prefer former name) and the former name (I would prefer it say f/k/a but the intention was clear) the it say f/k/a but the intention was clear) the signature and acknowledgement are sufficient signature and acknowledgement are sufficient without further proof of name or marital status. without further proof of name or marital status. Wayne

A mortgage is re-recorded and then an amended and restated mortgage is filed referring only to the original recorded mortgage and then a release is filed, again only referring to the original recorded mortgage. A. Is this sufficient to release the re-recorded mortgage or does the re- recorded mortgage remain as a memorial on the Certificate of Title? B. Is this sufficient to release the amended and restated mortgage? C. If the release only referred to the re-recorded mortgage, what is the status of the original and the amended and restated mortgage? Bob

When you have a POA & AFF, what do you require for dates? The Aff is dated Dec. 11 and the deed was executed/notarized Dec. 11, but is dated Dec. 29. Would you accept this or would you required an Aff executed as of the latest date between the effective date and execution date? There would be no reason to reject it. They don t want the deed to be effective until Dec. 29th. Kathy

COT states owner is single. A mortgage is memorialized stating owner is married. Subsequently, a deed is submitted stating owner is single. What is required regarding marital status? Kim

May an instrument be recorded in Torrens when it is not associated with a COT? Example: POA David

Title is in the name of a person who files bankruptcy and there is a deed from the person s bankruptcy trustee to the person memorialized on the Certificate of Title. A. What further documents, if any, need to be memorialized on the Certificate of Title to support the deed from the bankruptcy trustee? B. Would your answer be different if an order in a proceeding subsequent memorialized on the Certificate shows that the bankruptcy trustee was personally served with the Order to Show Cause? C. Does the order just referenced finding title in the name of the party who filed bankruptcy excuse the need for any spouse to join in any conveyance? Bob

LLC is the registered owner on a COT. SREDJ submitted FOR recording when the 2 LLC members get divorced. WHAT IS TO BE DONE? Kim

SCENARIO SCENARIO PART 1 PART 1 Husband and wife own homestead property as tenants in common. They both execute a TODD leaving the property to a 3rd person, mistakenly using the Grantor Joint Tenants form. It is recorded on the certificate in 2016. Today, they both execute and submit for recording a QCD conveying wife s interest to husband, but no replacement TODD. What if the After Acquired title box is checked? What if the After Acquired title box is checked? Kathy

SCENARIO SCENARIO PART 2 PART 2 When the Registrar cancels the existing Certificate of Title and issues a new one to husband, should the Registrar omit the memorial of the TODD or should it be carried forward onto the new certificate? Both husband and wife had a interest in the property prior to the TODD. QCD gives wife s interest to husband. Husband s original interest was designated in the TODD Husband still has interest from his wife. I would not drop the TODD. Kathy

A construction project will require the removal of a Judicial Landmark. What procedure should be used to perpetuate the location of the JLM? The strictest requirement would be a Proceeding Subsequent to re-establish the location of the JLM. Something less involved could be acceptable if properly documented. For example, if the JLM will not in fact be removed, merely covered in several layers of concrete and asphalt appropriate witness monuments could be set to enable future surveyors to locate the JLM without disturbing the concrete. Wayne

Registered property is sold at execution sale to A and after redemption period runs A sells to B , all this occurring more than 20 years ago, with the documents evidencing the foregoing memorialized on the Certificate of Title. A. Is a proceeding subsequent required to issue a new certificate of title to B ? B. If B is selling to C , could an examiner issue a directive for issuance of a new certificate of title in C s name pursuant to Minn. Stat. 508.71, Subd. 3? Bob

How Many Counties Require How Many Counties Require This? This? Upon the death of grantor/owner on a transfer on death deed (TODD), examiner review is now required before a new certificate of title will be issued to the TODD grantees. The TODD is filed without examiner review. MS507.071 Subd 8 No certification or approval of a TODD shall be required of the examiner of title prior to recording of the deed in the office of the Registrar of Titles. Subd 20 The affidavit, record of death, and clearance certificate, whether combined or separate, shall be prima facie evidence of the facts stated in each, and the registrar of titles may rely on the statements to transfer title to the property described in the clearance certificate. Kathy

Title is in the name of a corporation or limited liability company that has been administratively dissolved. A. Does that status have to be addressed before deed from entity can be accepted and new certificate of title issued? B. Can you simply recite in the deed that it is executed by the last officers of the entity without requiring any further documentation? Bob

If State Deeds do not expressly except minerals but minerals were owned by the fee owner at the time of the forfeiture, how should the minerals be handled? Who owns them following the forfeiture and State Deed conveyance? Kim

John is the registered owner on COT. Deed and nothing more submitted signed: Mary, as John s heir, Grantor. David

Is a CICCT necessary for all new CICs, Is a CICCT necessary for all new CICs, even if there are no common elements? even if there are no common elements? Yes, the CICCT provides a location to record Yes, the CICCT provides a location to record documents that affect all of the units within documents that affect all of the units within the CIC without the cost of posting to all of the CIC without the cost of posting to all of the individual certificates. the individual certificates. An amendment or supplement to the An amendment or supplement to the declaration would be memorialized on the declaration would be memorialized on the CICCT only. CICCT only. Wayne

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