SOUTHEAST MINNESOTA PREP CHAPTER Meeting Minutes ~ May 2, 2018 Hosted by: Steele County Recorder s Office Attendees: See attached list. Approval of Minutes: February Minutes approved. Certificates of Real Estate Value and Deeds representing Contract for Deed payoffs: Kelly Callahan Freeborn County Recorder covered information with the group on the requirements. An ecrv is not required when the transfer is made by a deed in fulfillment of a contract for deed. The deed needs state it is given in fulfillment of a contract for deed and state the recording information and consideration amount. Why did you return my documents without recording them? Kelly Callahan covered some of the reasons documents are rejected and sent back to the submitter prior to recording. Torrens Property: David Einhaus Steele County Examiner of Titles presented the group with an overview of the Torrens process. Two main issues: What does it take to get a document on the title certificate and what does it take to remove a document from the title certificate? Presentation notes attached to the minutes. He noted that some practices he covered are local. If in doubt, check with the Examiner in the county you are recording documents in. Split Requirements: Dave Kiehne Fillmore County Recorder covered new split requirements. The Fillmore County Board approved major changes to their split approval. The detailed information on the new requirements will be sent in a separate email from these minutes. County Recorder Updates: Reminder from all counties: 1
Please take the time to complete all the information on the ecrv and review before you submit. If required information is missing or incorrect, your document package will be rejected. MN Department of Revenue Updates: Bill Lonergan with the MN Department of Revenue gave an update on funds taken in by the State for MRT and SDT. New website check it out. The DT 1 form or MRT 1 form are not required if information is clearly stated on the document (IE: amount of increase, exempt, etc.). Fillmore: A security system is being installed in their courthouse. Public access is located on the east side of the courthouse. Dave wants feedback on the new split requirements does this work for the industry? Olmsted: Office remodel completed. Passport office has moved over merging with the customer service representatives. Public viewing room is to the right of the information desk. Mower: When submitting documents for recording, be sure to list the order on the recording slip/cover letter. Also helps to number your documents in the bottom right corner. Houston / Steele / Freeborn / New Ulm / Nicollet: Nothing new to update at this time. Dodge: erecordings are increasing in their office. Waseca: Construction on Highway 14. Martin: Document count down. Increase in the number of people that draft their own documents. New staff in the auditor/treasurer office that let documents go through that should be rejected back to the submitter. Rice: Working on imaging older documents. Wabasha, Goodhue: No representation. Next meeting date ~ August 8th, 2018 ~ Host and location to be determined. Adjournment - Susan Kramer Secretary ~ SE MN Prep Chapter Phone (507)328-7673 2
Email: Kramer.susan@co.olmsted.mn.us Chapter Co-Chairs: Jim Ohly ~ jim@ohlylaw.com Kelly Callahan ~ Kelly.callahan@co.freeborn.mn.us 3
PREP ATTENDEES: Bev Bauer Houston County Jill Cordes Mower County Susan Kramer Olmsted County Lorri Starkson Olmsted County Dave Kiehne - Fillmore County Sue Miller Adams Rizzi Sween Carrie Werre Olmsted County Dan Ziebell Ziebell Law Dawn Campion Olmsted County Erin Mahutga Edina Realty Title Cheryl Brady Baudler Law Josie Mancilman Ekstrand Finnegan Law Betti Kamolz Brown County David Einhaus Steele County Examiner Diane Sanders Martin County Judy VanErp Rice County Linda Karst Waseca County Mark Mickow - Ryan & Grinde Sharon Budin Le-sueur County Kathy Conlon Nicollet County Deb VonWald F & M Community Bank Bank Deb Karlson First American Title Paul Finseth Dunlap & Seeger PA Halvorsen Mary Huntley Hoversten Law Jenny Fibison Olmsted County Sherri Asmus Faribault County Rick Kveen Steele County Kristi Blum Steele County Deanne Wagner Adams Rizzi Sween Jim Ohly Ohly Law Patty Ohly Ohly Law Mona McAndrew Dodge County Jennifer Bigelow Edina Realty Title Erin Hultgren TriMin Beth Cage Ryan & Grinde Carissa Frericks Rochester Title Bill Lonergan MN Dept. Revenue Denise Gunderson Ohly Law Joan Boesen Olmsted County Karen Cutting O Brien, Wolf Law Lori Meurer Winona County Melissa Trihus Wendy VonWald Olmsted County Joy Sing Watonwan County Cindy Zimmerman F & M Community Kari Williams Dunlap & Seeger PA Allan Halvorsen Goldman Sturtz Chad Paulson MN Dept. Revenue 4
PREP MEETING May 2, 2018 Introduction Documents: Keep in mind that some practices are local. If in doubt, talk to the Examiner. Generally two issues: 1. What does it take to get a document on the title certificate? 2. What does it take to remove a document from the title certificate? Document Acceptance and Approval may be difference between ability to register a document and ability to obtain a new Title Certificate. The Most Common Documents Needing Examiner Approval: 1. Deed or other document executed under a Power of Attorney. MS 523.23 MS 508.12, MS 508.13 No statutory provision, but we require approval in Steele County to be certain that the Power authorizes the action and review of Affidavit of Attorney in Fact for individual POAs. 2. Divorce Decree or other Judicial Decree Divesting Title MS 508.59 A divorce decree can be registered without advance approval but no new Title Certificate can be issued without Examiner approval. Review accuracy of descriptions, whether liens are reserved, etc. 3. Conveyance from Trust MS 508.62 Review Certificate of Trust, Affidavit of Trustee and Trustee s Deed Some exceptions as to pooling trusts (MS 501C.0101(c) however these are often accompanied by a Power of Attorney executing for the trustee. 4. Probate Transfers (MS 508.69) Including Conservator Deeds Need to examine Probate documents when new Certificate is to be issued. If sale, then no MA Clearance is required. If it is a distribution no new Certificate is issued without MA Clearance or Notice to Commissioner and passage of at least 70 days. Less Common Documents Needing Examiner Approval: 5
1. Claims of adverse or unregistered interests (MS 508.70, MS 508.12, MS 508.13) This a Steele County requirement no statutory mandate, but require examination to see if underlying requirements are met. 2. Bankruptcy Trustee Deeds (MS 508.13) Supporting documents must be reviewed these may vary for a number of reasons. 3. Condominium Declarations or By-Laws Review the CIC plat along with Declarations may ask for County Surveyor for input. MS 508.351: Prior to recording with the registrar of titles of a declaration or bylaws for 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 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. NOTE: This does not apply to townhouses they are a Planned Unit Development and each lot has its own structure. Shared elements are usually greenspace and roads. Documents Registrar Can Remove: 1. Liens or encumbrances voluntarily released mortgage satisfactions, etc. 2. Attorney liens that have expired. Of record more than one year and no NLP filed. MS 481.13(3) 3. Assignment of Rents or Leases Once the mortgage to which the Assignment is tied is satisfied or has expired. MS 559.17(3) 4. Request for Notice of Mortgage Foreclosure MS 580.032 Once the requesting party has no record interest in the property. EXCEPTION: Request filled by CIC Association referring to lien rights created under Declaration. 5. TODD where grantor conveys the property and retains no interest. 6. Claims of Unregistered interests that have been of record more than ten years shall not be carried forward unless they have been renewed or NLP filed. MS 508.70(2). 7. Mechanic s Liens where Notice of Lis Pendens has not been filed within one year of the date of last item of work as stated in Mechanic s Lien. MS 514.12(3). 6
8. Notice of Lis Pendens to Foreclose mortgage if mortgage is satisfied or released. MS 508.57 and MS 580.032(3). 9. Option Agreement where the term of the Option has expired without extension. MS 508.421(1a). Documents that can be removed with Examiner approval: 1. Covenants and Restrictions that have expired by their terms or more than 30 years (with exceptions in MS 500.20 (2) (a)). Condo Covenants, party walls, if someone is claiming the benefit of the interest and files it. Misc. others. 2. Mortgages that are more than 15 years old (if no due date) or more than 15 years past due date stated in mortgage also not granted to the U.S. or an agency of the U.S. 3. Cancelled Contract for Deed where cancellation documents are of record for five years.ms 508.58(5) 4. Federal Tax liens of record more than 10 years and 30 days and not refiled 26 USC 6323. 5. Federal Court judgments in favor of US of record more than 20 years and not renewed. 28 USC 3201. 6. State tax liens of record more than 10 years and not renewed. MS 270C.63(9). Dealing with MA Clearances Confusion is common about when Clearances are needed for TODD, joint tenancy, life estate and probate transfers. 1. TODD Need MA Clearance in all cases and Examiner Certificate for Torrens to issue new Title Certificate. MS 507.71(3) and MS 507.71(23). 2. Joint Tenancy/Life Estates: A. If joint tenancy or life estate was created prior to August 1, 2003, it is not subject to estate recovery procedures, even if a Notice of Potential Lien was filed against the joint tenancy or life estate interest. MS 256B.15(7). B. As to joint tenancy or life estate created after August 1, 2003, need notice to State and Affidavit showing service more than 70 days prior to Affidavit of Survivorship (MS 524.3-801 (d)(2)) OR a Clearance 7
Requested Topics Certificate from appropriate Department of Human Services office. An Affidavit of Survivorship may be registered, but no new Certificate of Title can be issued until the MA Clearance is registered. C. Affidavit filed by surviving spouse as to homestead property requires Affidavit in compliance with MS 256B.15 (1)(a)(6) and Examiner approval. D. Notice of Potential Lien or Lien Notice filed. Need Release from appropriate office unless it is filed against a joint tenancy or life estate created prior to August 1, 2003. Lien continues for 20 years unless released.ms 256B.15(1)(f). E. Lien filed more than one year after the date of MA recipient s death is too late. MS 256B.15 (1)(c) A state agency with a claim or potential claim under this section may file a notice of potential claim under this subdivision anytime before or within one year after a medical assistance recipient dies. I have been unable to find any provision requiring the survivors to notify the state of the death! 3. Probate Proceedings A. Personal Representative is required to give Notice to State as soon as soon as practicable after appointment. (MS 524.3-801(d)(1). B. Sale by Personal Representative. No restrictions on sale by Personal Representative liens attach to sale proceeds. MS 524.3-801 (2). C. Distribution by Personal Representative. No distribution prior to 70 day notice period without Clearance Certificate. MS 524.3-801 (2). D. Decree of Descent Proceedings. Requires a Clearance Certificate relative to MA claims. MS 525.313. Name Discrepancies--Problems If a husband and wife were in title on the certificate with middle initials and then do a quit claim deed to remove their middle initials but there is a TODD already memorialized on the certificate. Does the new QCD have any effect on the TODD? I would say that the subsequent Quitclaim Deed does not affect the TODD in any way, unless the Quitclaim Deed somehow stated that it was intended to revoke the TODD. 8
Generally, my policy is that the name of the Grantors in the Deed should be the same as on the Title Certificate. If there are variations the body of the Deed and the acknowledgement can be used to identify individuals as FKA or an Affidavit of Identity can be used. Used mostly in case of marriage or divorce. If middle initials are missing or present that is not normally an issue. If there is a conflict between initials there must be clarification. Divorce Decrees No Deed In Steele County we require an Examiner s Certificate any time a conveyance is presented in connection with a divorce even if there is accompanying quitclaim deed. Legal descriptions are often incorrect and there may be liens reserved, so we always require the Certificate of Examiner. MS 508.59 provides: A judgment or decree affecting registered land shall be registered upon the presentation of a certified copy thereof to the registrar, who shall enter a memorial thereof upon the certificate of title. When the registered owner of such land is by such judgment or decree divested of an estate in fee therein, or of any part thereof, the prevailing party shall be entitled to a new certificate of title for the land, or so much thereof as may be described in the judgment and decree, and the registrar shall enter such new certificate of title as in the case of a voluntary conveyance. No such new certificate shall be entered except upon 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 or upon the order of the district court directing the issuance thereof. Deeds/Mortgages After Mortgage Foreclosure Sale In Steele County we started off requiring my review of the proposed documents and I would draft a Directive for the Registrar to memorialize the documents. After there started being so many requests we decided that memorializing the documents was okay, but no Certificates would be issued. I dealt with the subsequent transfers adjusted in my Report of Examiner and required service or Consents from all parties for the Proceeding Subsequent. 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. MS 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. 9