Minnesota Registered Real Property;
Chapter 508
In contrast to the Minnesota Abstract Property system, the Minnesota Registered Real Property system under Minnesota Statutes, Chapter 508:
- provides a title ownership certificate – which is similar in appearance to a vehicle title, and
- is supervised:
- by the office of the County Registrar of Titles – which will determine the propriety and effectiveness of a document before accepting it for filing;
and if necessary,
- by the office of the County Examiner of Titles – which can be requested to provide a legal Directive with respect to the propriety or sufficiency of any document submitted for filing.
Minnesota Registered Real Property – Initial Minnesota Real Property Registration under Chapter 508
Minnesota Abstract Property may become subject to the Minnesota Registered Real Property system pursuant to an initial registration procedure governed by Minnesota Statutes, Chapter 508, which requires:
- notice to all interested persons – including by publication in a legal newspaper,
and
- a hearing before a judge or deputy judicial officer.
Decree of Registration under Minnesota Chapter 508
Immediately following a successful judicial hearing, a decree of registration will be signed by a judicial officer, and either:
- released to the attorney pursuing the registration for filing with the County Registrar of Titles,
or
- filed directly with the County Registrar of Titles.
Minnesota Registered Real Property – Certificate of Title under Minnesota Chapter 508
After the issuance of a decree of registration, the County Registrar of Titles will issue a Certificate of Title in the name of the registered owner – subject only to all adjudicated encumbrances (and statutory title exceptions) – which are noted as “memorials” on the Certificate of Title.
The issuance of a Certificate of Title will eliminate the necessity of maintaining an abstract of title with respect to any real property which has been registered.
Thereafter, upon any prospective transfer of title, generally only those title issues appearing on the Certificate of Title will need to be considered by the examining attorney or title company.
Benefits of Title Registration Under Minnesota Chapter 508
(i) Address Title Defects, and Eliminate “Clouds” on Title
An owner may choose to register title to Minnesota real property under Chapter 508 because:
- certain title defects – “clouds on title” – may have been identified by an examination of the abstract of title,
and
- the Torrens Registration Proceeding is an effective way to address such defects.
(ii) Provide Cleaner Title Evidence
An owner may also choose to register title into the Minnesota Registered Real Property system under Chapter 508 in order to provide a more user friendly evidence of title ownership to a prospective buyer than is available under the Abstract Property form of title evidence.
Once real property has been registered under the Minnesota Registered Real Property system, attorneys and title examiners will no longer be required to examine information relating to certain recorded documents dating back to the original conveyance from the U.S. Government.
Instead, the title examiner will merely need to review those title issues identified on the Certificate of Title.
(iii) Provide Independent Review of Documents
A third benefit of the Minnesota Registered Real Property system is that a County official at the office of the Registrar of Titles:
- will review all documents submitted for filing for propriety and effectiveness,
and
- may require that certain issues be approved by a second County official at the office of the County Examiner of Titles before the County Registrar of Titles will accept a document for filing.
For example, the County Examiner of Titles must review and approve all probate documents before a Personal Representative’s Deed, or a probate court decree, may be accepted for filing.
While the process of document review:
- by the County Registrar of Titles,
and
- when required, by the County Examiner of Titles,
may add to the procedural requirements for filing certain documents, it also ensures that documents which are accepted for filing are in proper form, and will more likely accomplish the intended objective.
(iv) Protect Minnesota Title From Adverse Possession Claims
A fourth benefit of the Minnesota Registered Real Property system is that real property rights are less likely to be lost to adverse possession claims – since Minnesota registered real property titles are generally not subject to a legal action or defense which is based upon the continuous physical occupation of real property for 15 years – which is one of the statutory requirements for adverse possession in Minnesota.
Copyright 2018 – All Rights Reserved
Gary C. Dahle – Attorney at Law
2704 Mounds View Blvd., Mounds View, MN 55112
Phone: 763-780-8390 Fax: 763-780-1735
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