When can a Mechanic’s Lien be filed?    [Back to top]

Under Minnesota statute, a Mechanic’s Lien must be filed no more than 120 days after the last work, skill, material, or machinery provided by the person claiming a lien.

When does a Mechanic’s Lien expire?    [Back to top]

A suit to foreclose a mechanic’s lien must be filed within one year after the last item of work, , skill, material, or machinery is provided by the person claiming a lien.

How do you get rid of a Mechanic’s Lien?    [Back to top]

If a lien has been filed it must be released of record or, if a foreclosure action has been started, there is a procedure for depositing funds into court. There is also a statutory provision for an action to remove the lien, which would also allow the deposit of funds with the court. Along with depositing the funds into the court, application can be made to have the property released from the lien.

What is a Mechanic’s Lien?    [Back to top]

Minnesota has a procedure to assure people who provide labor or materials for improvements to real property that they will be paid. In general, if material or labor is provided which improves or repairs the real property, the party providing that material or labor has the right to file a lien on the property if they are not paid.

Minnesota statute gives this type of lien a special priority – it is treated as if the lien were filed as of the first day any work was done on the property as a part of the whole improvement. For example, when a new building is constructed, one of the early steps is often excavation and one of the last steps is finish carpentry. If the finish carpenter is not paid and files a lien it is treated as if it had been filed on the first day that the excavator (assuming that this is the first work done) did any work on the property.

What is Title Insurance?    [Back to top]

Title Insurance is a contract or agreement in which the Title Insurance Company (insurer) agrees to indemnify the owner (insured) of the Title Insurance Policy against any loss (up to the insured amount) that the party incurs as a result of the title being other than as shown in the policy.

Unlike other Insurance Policies, such as a homeowner's policy or automobile policy, title insurance is purchased with a single, non-repeating premium. This premium will be based in part on the amount of coverage, and in part on the customized extent of coverage provided through endorsements.

Title Insurance protects against errors that have already occurred as of the date of the policy, ordinarily the date of the closing or the date the documents are actually recorded, whichever is later.

Prior to issuing a policy of title insurance, the insurer will perform research and document review necessary to evaluate and limit the risk to both the insurer and to the insured. This will involve reviewing public records, the information about the transaction and other matters provided by the parties,

What is a "date down" endorsement?    [Back to top]

Because title insurance only covers errors occurring through a particular date, there are occasions when a party wants a more current date on their existing policy, or to obtain a new policy with a more current date. The most common occurrence when this is required is when a borrower and lender agree to modify a mortgage, or when a lender assigns a mortgage. Especially where a modification includes loaning additional funds to the borrower, the lender wants to be certain that their mortgage has the same priority over other liens as to all of the funds advanced

In order to issue an endorsement which extends the effective date of the policy, a new search of the records must be made. A letter report is then presented to the relevant parties showing what documents have been filed during the period from the policy date to the current date of the county records. This report does not actually affect the policy, but provides information to decide what needs to be done prior to closing on the proposed modification.

Based upon what the letter report reveals, a specimen endorsement will be provided to the lender, showing how we expect the final endorsement to appear. This endorsement will include “standard” policy exceptions related to gap, parties in possession, mechanic's liens, survey matters, etc, which occur after the original policy date, unless these are separately resolved as part of the current transaction.

In addition to abstracting and examination fees, an additional premium will be charged for this endorsement, which is generally some percentage of the original premium plus an amount for any additional funds advanced under the mortgage. The premium relates to the fact coverage period for the policy has been expanded. The amount of this premium will depend on factors such as the length of time the policy is extended, the policy amount, and particular risk factors which apply.

What is a "piggyback" endorsement?    [Back to top]

Under particular circumstances, a Title Insurer will issue an endorsement to a policy originally issued by a different Title Insurer. We call this a “piggyback” endorsement, because it rides on the back of the other company's policy.

A piggyback endorsement is made subject to all the terms of the original policy and any other endorsements already issued against that policy. It also contains an express provision that it does not provide coverage for any matters covered under the underlying policy.

The piggyback endorsement clearly begins its coverage as of the date of the underlying policy and only provides insurance for the period from that date through the effective date of the endorsement.

In other respects this type of endorsement is very similar to a date down endorsement. Ordinarily, a letter report is presented to the relevant parties showing what documents have been filed during the period from the policy date to the current date of the county records. This report does not actually affect the policy, but provides information to decide what needs to be done prior to closing on the proposed modification.

Based upon what the letter report reveals, a specimen endorsement will be provided to the lender, showing how we expect the final endorsement to appear. This endorsement will include “standard” policy exceptions related to gap, parties in possession, mechanic's liens, survey matters, etc, which occur after the original policy date, unless these are separately resolved as part of the current transaction.

In addition to abstracting and examination fees, an additional premium will be charged for this endorsement, which is premium for bringing the date forward plus an amount for any additional funds advanced under the mortgage. The premium relates to the fact coverage period for the policy has been expanded. The amount of this premium will depend on factors such as the length of time the policy is extended, the policy amount, and particular risk factors which apply.

Why should we purchase an owners policy?    [Back to top]

When you purchase real estate, it is important to know that you will be able to recoup your investment in that property at some future date, when you choose to sell.  By purchasing an Owner's Title Insurance Policy, you can rest easier knowing that the Title Insurer will defend against claims that you do not have good title to the property.

Title insurance is issued only after a through search and examination of the real estate records relating to the property.  American Land Title Association (ALTA) estimates that in 25 per cent of the examinations, some type of title problem is discovered and then resolved prior to closing.

Occasionally, however, despite the care taken in searching and examining, hidden problems can arise after closing.  These problems include fraud, forgery, ineffective conveyance documents, and liens such as mechanics liens or liens for unpaid estate, inheritance, income or gift taxes. 

Title insurance will pay for defending against any lawsuit arguing that the title to the property is not as shown on the policy, and will either fix the title problem, or pay for any loss you, as the insured, suffer.

An owner's policy of title insurance will continue in effect for as long as you retain an interest in the property or have any obligation under a warranty given in any document conveying title to the property to another party.