Real Property Ownership, Title, Deeds, and Recording
Estates and co-ownership
Fee simple absolute is the broadest estate. Lesser interests include life estates, easements (an interest in land), and licenses (revocable permission). Co-owners hold as tenants in common (no survivorship) or joint tenants (survivorship).
Two title systems
Abstract property is traced through recorded documents; the buyer receives a title commitment and an owner's policy. Torrens (registered) land is governed by a certificate of title issued by the registrar of titles; title is conclusive, and adverse possession does not run against registered land.
Deeds
- Warranty deed (statutory short form, Minn. Stat. § 507.07) carries present and future covenants.
- Limited warranty deed restricts covenants to the grantor's period of ownership.
- Quitclaim deed conveys whatever interest the grantor holds, with no covenants.
Recording and transfer taxes
Recording in the county recorder's or registrar's office establishes priority. Minnesota imposes state deed tax of 0.33% of consideration and mortgage registry tax of 0.23% of the debt. A Certificate of Real Estate Value is filed for most transfers.
Worked example
Owen sells to Rita for $400,000 subject to a $320,000 mortgage. Deed tax = 0.33% × $400,000 = $1,320; MRT = 0.23% × $320,000 = $736. Rita records immediately, which defeats a later buyer from Owen who never records (Minn. Stat. § 507.34).
Traps that cost marks
- Assuming a quitclaim deed is invalid - it conveys, but without protection.
- Forgetting the CRV filing.
- Treating Torrens land as if it were recorded like abstract land.