One of the most interesting questions we get with Torrens property is “why do I need to involve title insurance when my property is Torrens?” That’s a great question.
Certificates of Title include exceptions that may be covered by Title Insurance, including the following:
- Liens or rights under federal law that pre-empt Minnesota law.
- Property taxes or special assessments
- Leases under three years or actual occupation of the property.
- Rights in public roads upon the land.
- Outstanding Mechanic’s liens that may exist under Minn. State. 574.01 to 514.07.
- Rights of anyone in possession under a deed or Contract for deed from the owner of the Certificate of Title.
- Right or appeal or rights to appear and contest the application to register the title.
Certificate of Title Errors
There can be errors on the Certificate of Title. The Torrens system is supposed to be the gold standard for what title is. It’s supposed to be perfect (even though it isn’t). Here are some of the errors we’ve seen in the certificate of title:
- The wrong owner shown on the Certificate of Title
- The wrong legal description on the Certificate of Title
- The wrong instruments recorded against a certificate of title
- Old mortgage documents that don’t affect title.
- Documents that were accidentally dropped from successive Certificates of Title.
- Missing parcels on the Certificate of Title.
- Too many parcels on the Certificate of Title.
- Documents recorded against the wrong Certificate of Title.
- Incorrect dates, recording dates and document numbers.
- Incorrect description of the document.
Fixing Errors in the Certificate of Title
When these errors crop up we work with the Examiners of Title to have those items corrected.
This can be a lengthy process including a search through the history of the title and a back and forth with the examiner of title to correct the certificate of title. The certificate of title is supposed to be an accurate reflection of title to the property. Unfortunately it’s not always that way.