Minnesota Real Estate Practices
- Attorney Involvement
- Cancellation/Commitment Fee
- Certificate of Release (of Mortgage)
- Good Funds Requirements
- Joinder of Spouses
- Mortgage Tax
- Payment Customs
- Policy Countersignatures
- Real Estate Taxes
- Search and Examination Fees
- Search Requirements
- Security Instruments (Deed of Trust vs. Mortgage)
- Standard Exceptions and Requirements
- State-specific Policy Variations
- Title Insurance Form and Filing Regulations
- Transfer Taxes
- Withholding Taxes
- Witness Requirements
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.
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. See Minn. Stat. Section 507.401.
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.
Good Funds Requirements
Is there a good funds requirement in your state?
Yes, Section 82.176 and 82.77 (9-4-19)
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.
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.
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:
(b) Seller pays Transfer Tax by statute. Seller pays Recording Fee to release encumbrances. Buyer pays Recording Fee for deed and mortgage.
Please describe any statutory or regulatory requirements for countersignatures in order to issue the policy (for example, residency requirements).
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.
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 matters 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.
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.
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.)
Is usury coverage available?
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.
Are witnesses required? If so, please describe.
Witness not required.