Minnesota

General Procedures and Information

Method of Issuing Title Insurance

Title agents issue title insurance and related forms.

Foreclosures

Most mortgage documents used in Minnesota contain a power of sale clause. Thus, they can be foreclosed non-judicially. In order to foreclose non-judicially, there must be timely service of notice on property occupants and publication as required by the statute. Minn. Stat. Ch. 580.

Also Minnesota has a  statute, MSA Sec. 507.03, which  specifically allows one spouse to execute a purchase-money mortgage without the other non-owning spouse doing so and still having the mortgage enforceable against the non-owning, non-signing spouse's interest. If any portion of the loan is used to purchase the property the entire debt and mortgage used to secure it will be deemed to be "purchase-money".

For specific questions, contact Minnesota underwriting personnel.

References:

Related Bulletins:
None.


Corporate Directory: Minnesota Contacts.

Redemption Rights

In Minnesota, mortgages can be foreclosed either by advertisement or by court action. Typically residential mortgages are foreclosed by advertisement. The borrower will have either a six month or a 12 month redemption period depending on the circumstances of the loan. Minn. Stat. Sec. 580.23 (advertisement) or Minn. Stat. Sec. 581.10 (court action). In addition if there are numerous parcels being foreclosed including the homestead the borrower may have the right to redeem the homestead parcel separately. Minn. Stat. Sec. 582.041. If there are numerous agricultural parcels, the borrower may have the right to redeem agricultural parcels separately. Minn. Stat. Sec. 582.042. If the property is agricultural, the Farmer-Lender Mediation Act may require further procedures, including but not limited to notice of right to mediate the dispute, mediation and a right of first refusal for the foreclosed mortgagor. Minn. Stat. Sec. 583.20-583.32.

Survey Standards

Stewart Title Guaranty Company does not require a survey for deletion of the survey exception in loan policies on 1-4 residential properties and commercial properties with liabilities of $10 million or less. Residential properties are defined as subdivision lots or acreage tracts of twenty-five acres or less.

References
Related Bulletins:

MU000028   Survey Requirements - Loan Policies

MU000038   This Bulletin has been replaced by MU2007002.

Document and Form Information

Acknowledgments

These are the standard forms of acknowledgment:

  • MN Acknowledgment-Individual 1
  • MN Acknowledgment-Corporation 1
  • MN Acknowledgment-Partnership 1

Conveyances

The customary form of conveyance is MN Deed-Warranty (Individual to Joint Tenants) 1.

Other common forms of conveyance include the following:

  • MN Deed-Warranty (Individual to Corporation or Partnership) 1
  • MN Deed-Warranty (Corporation or Partnership to Individual(s)) 1
  • MN Deed-Warranty (Corporation to Partnership) 1
  • MN Deed-Warranty (Corporation or Partnership to Joint Tenants) 1
  • MN Deed-Warranty (Limited-Individual(s) to Individual(s)) 1
  • MN Deed-Warranty (Limited-Individual(s) to Corporation or Partnership) 1
  • MN Deed-Warranty (Limited-Individual(s) to Joint Tenants) 1
  • MN Deed-Warranty (Limited-Corporation or Partnership to Individual(s)) 1
  • MN Deed-Warranty (Limited-Corporation or Partnership to Corporation or Partnership) 1
  • MN Deed-Warranty (Limited-Corporation or Partnership to Joint Tenants) 1
  • MN Deed-Quitclaim 1
  • MN Deed-Quitclaim (Individual(s) to Corporation or Partnership) 1
  • MN Deed-Quitclaim (Individual(s) to Joint Tenants) 1
  • MN Deed-Quitclaim (Corporation or Partnership to Individual(s)) 1
  • MN Deed-Quitclaim (Corporation or Partnership to Corporation or Partnership) 1
  • MN Deed-Quitclaim (Corporation or Partnership to Joint Tenants) 1

A Certificate of Real Estate Value must accompany any deed to be recorded in Minnesota.

Witnesses are not required on conveyances executed in Minnesota. Minnesota Statute Section 386.39.

A conveyance executed and acknowledged in accordance with the laws of another state will be accepted for recordation in Minnesota. Minnesota Statute Section 507.24.

A well certificate, if applicable, must be presented with a conveyance at the time of recording. The filing fee for a well certificate is $20.00. If there is no well, the deed must contain language to that effect. Minn. Stat. Sec. 103I.235.

Releases/Satisfactions

The standard forms of release or satisfaction forms are:

  • MN Satisfaction of Mortgage by Individual 1
  • MN Satisfaction of Mortgage by Corporation 1
  • MN Release-Partial (Individual) 1
  • MN Release-Partial (Corporation) 1
  • MN Release-Partial (Corporation) 2
  • Certificate of Release of Mortgage by Title Insurance Company or its Agent

Security Instruments

The customary security instrument is the mortgage. A contract for deed is also used.
Witnesses are not required on mortgages executed in Minnesota. Minn. Stat. Sec. 386.39.
A mortgage executed and acknowledged in accordance with the laws of another state will be accepted for recordation in Minnesota. Minn. Stat. Sec. 507.24.

Title Insurance Form Regulations

Title insurance policies and endorsements must be filed with the Commissioner of Insurance in Minnesota. Stewart Title Guaranty Company has filed the standard ALTA policy forms and endorsements along with state specific endorsement forms.

References:

Forms List: Minnesota Forms.

Fees, Rates and Taxes

Deed Transfer Taxes

Minnesota has a state deed tax. The current rate is 0.0033 times the consideration (0.0034 in Hennepin and Ramsey Counties).

A Certificate of Real Estate Value must accompany any deed to be recorded in Minnesota.

The seller customarily pays the transfer taxes in Minnesota.

The minimum state deed tax is $1.65 ($1.70 in Hennepin and Ramsey).

References:

Related Bulletins: None.

Mortgage Transfer Taxes

Minnesota does have a mortgage registration tax. The current rate is 0.0023 times the prinicpal amount of the mortgage. (0.0024 in Hennepin and Ramsey Counties).

This tax is paid by the mortgagor.

Real Estate Taxes

Real estate/ad valorem taxes are payable in two installments in Minnesota. The first installment is due on May 15th, the second installment is due on October 15th. If there are delinquent taxes that carry past January 1 of the following year, they must be paid before a deed for the property can be recorded.

Recording Fees

Recording Fee Schedule

Abstract Fees (Statute 357.18)

$46.00 - - Recording Fees
(non-standard fees have been eliminated; however, documents will be rejected if they are illegible for record preservation.)

$46.00 - - Satisfactions, Assignments, Partial Releases, Certificates of Releases
(Statute 357.18 Subd. 1 & 2) up to 4 numbers. $10.00 each additional number over 4

Search and Examination Fees

Title insurance premiums do not include search and examination fees. Charges for the search and examination fee are negotiable between buyer and seller. Seller may agree to provide a title commitment.

Title Insurance Rates

Title insurance rates must be filed with the Commissioner of Insurance in Minnesota.

The payment of the owner's policy is usually negotiated between the seller and purchaser. The purchaser pays for the loan policy.

For specific questions, contact Minnesota underwriting personnel.

References:

Corporate Directory: Minnesota Contacts.

Spousal Rights

Spousal Rights

Although the actual terms dower and curtesy are no longer used in Minnesota, there is a marital property interest. Minn. Stat. Sec. 519.101. There must be joinder of a spouse in all conveyances with extremely rare exceptions. Minn. Stat. Secs. 500.19; 507.02; 519.07; 518.58.

Minnesota is not a community property state.

Minnesota has homestead laws that affect different aspects of real estate, such as assessment for real estate property purposes, attachment of judgments, and bankruptcy exemptions. A spouse must join in all conveyances of real property with extremely rare exceptions. Minn. Stat. Sec. 507.02.

Statute Of Limitations

Statute Of Limitations

The statute of limitations on judgment liens is 10 years from the entry of the judgment. Minn. Stat. 548.09.

The statute of limitations on state tax liens is 10 years. Minn. Stat. Sec. 270 C. 63 (g).

Real Estate Practices

Attorney Involvement

Please describe any requirements under applicable state law for attorney, abstractor or other special professional involvement, for example, in the search, examination, opinion of title, signing, closing, disbursement, recording, preparation of documents, and/or policy-issuance.

There are no special rules concerning attorney involvement.

Cancellation/Commitment Fee

Does your state permit or require a cancellation fee or commitment fee upon cancellation?

Permitted, not required.

Certificate of Release (of Mortgage)

If anyone other than the lender (such as a title agent, settlement agent, underwriter or attorney) has the authority to release the security instrument, please describe.

Underwriter is authorized for mortgages up to 1.5 million dollars; can delegate to title agent.

Deeds

Please describe the kinds of deeds that are customary for commercial and residential transactions. Please describe the kinds of deeds that are generally not insurable.

Warranty, Limited Warranty, and Quit Claim. All are insurable.

Joinder of Spouses

If a non-title holding spouse is required to join in the execution of a deed or a security instrument, please describe. Any analogous rights, such as those in a civil union or equivalent, should also be addressed.

Non-owning spouse must join in any deed or other conveyance except a purchase-money mortgage.

Mortgage Tax

Is there a mortgage tax in your state? If yes, is it uniform across the state or does it vary? If it is uniform, please describe.

Yes there is a tax. It is uniform through out the state EXCEPT in two counties (Hennepin and Ramsey which encompass Minneapolis and St. Paul respectively). It is 0.0023 times the debt secured by the mortgage in all other counties and 0.0024 in Hennepin and Ramsey.

.

Payment Customs

Who customarily pays for:

(a) Owner's Policy?
(b) Transfer Tax & Recording Fee?
(c) Survey Charges?
(d) Closing/Settlement Fees?

All charges are subject to change in the contract, however, customarily charges are as follows:

(a) Buyer
(b) Seller pays Transfer Tax by statute. Seller pays Recording Fee to release encumbrances. Buyer pays Recording Fee for deed and mortgage.
(c) Negotiable
(d) Split

Policy Countersignatures

Please describe any statutory or regulatory requirements for countersignatures in order to issue the policy (for example, residency requirements).

None required.

Real Estate Taxes

Please describe the general tax year, due dates, and delinquency dates, including lien dates and payment cycle.

Calendar year. First half payment due 5/15 and second half payment due 10/15. Payable for current year.

Search and Examination Fees

Is it permissible and/or customary to charge a separate search and/or examination fee, and under what circumstances? If your jurisdiction is all-inclusive, please state that.

Separate charges for searching and examining customary.

Search Requirements

Is there a minimum period of time for a title search required: (a) by state law, (b) pursuant to marketable record title acts, or (c) by any other applicable title examination standards (e.g., state bar association)? Please respond to each category. If a minimum search period exists for any category, please state it.

No state law imposed time period. The marketable title act is 40 years.

Security Instruments (Deed of Trust vs. Mortgage)

Please describe the customary and permissible form(s) of security instruments used in your state.

Who can be listed as the trustee on the Deed of Trust (e.g., residency and/or natural person requirements, etc.)? Can an underwriter or title agent be designated as the trustee, and, if so, is it customary?

A mortgage is used.

Standard Exceptions and Requirements

Please identify the standard exceptions and requirements that are customarily used in your state.

Minnesota uses the standard exceptions.

1. Rights or claims of parties in possession not shown by the Public Records.
2. Easements, or claims of easements, not shown by the Public Records.
3. Encroachments, overlaps, boundary line disputes, or other maters which would be disclosed by an accurate survey or inspection of the Land.
4. Any lien, or right to a lien, for services, labor, or material heretofore or hereafter furnished, imposed by law and not shown on the Public Records.
5. Taxes or special assessments which are not shown as existing liens by the Public Records.

In residential transactions these are generally deleted based upon clean seller's affidavits and in some areas a physical property inspection. Virtual Underwriter bulletin guidelines are followed.

State-specific Policy Variations

If there are state-specific changes to the provisions in the ALTA policies (e.g., Arbitration, Minerals), please describe.

None required.

Title Insurance Form and Filing Regulations

Please describe the form and/or rate filing requirements, if any, related to policies and endorsements. Please describe any applicable rating bureau.

Forms are filed and approved. Rates are filed and used unless disapproved.

www.commerce.state.mn.us

Transfer Taxes

Is there a transfer tax in your state? If yes, is it uniform across the state or does it vary? If it is uniform, please describe.

Yes. 0.0033 times sales price less any assumed mortgage. (0.0034 in Hennepin and Ramsey Counties.) When there is no consideration or when it is $500.00 or less, the transfer tax is $1.65. ($1.70 in Hennepin and Ramsey.)

Usury

Is usury coverage available?

Yes

Withholding Taxes

What are your state's requirements, if any, with regard to withholding proceeds from a sale, similar to but not including FIRPTA?

None at state level.

Witness Requirements

Are witnesses required? If so, please describe.

Witness not required.

All content on Virtual Underwriter is subject to the terms shown here.