Real Property Ownership, Rights, Interests, and Transfer
Estates, co-ownership, and transfer
Fee simple absolute is the fullest estate; lesser estates include life estates and leaseholds. Minnesota recognizes tenancy in common (no survivorship, unequal shares allowed) and joint tenancy (equal shares with survivorship). Minnesota does not recognize tenancy by the entireties. Homestead rules matter enormously: a spouse must join in a conveyance or mortgage of the homestead, and a non-joining spouse's interest can cloud title. Know encumbrances - easements, liens, covenants, deed restrictions, and encroachments - and the distinction between a lien (a money claim) and an easement (a use right).
Minnesota deeds: warranty, limited warranty, and quitclaim. A deed needs grantor and grantee, words of conveyance, a legal description, signature, and acknowledgment for recording. State deed tax is 0.33% of consideration (plus any local deed tax); mortgage registry tax is 0.23% of the mortgage debt. Minnesota is a race-notice recording state, so record promptly. Transfer-on-death deeds are authorized. Adverse possession generally requires 15 years of actual, open, hostile, exclusive, continuous possession.
Traps
- Forgetting the spousal homestead signature.
- Assuming joint tenants may hold unequal shares (they may not) versus tenants in common (they may).
- Using 'quitclaim' and 'warranty' interchangeably - they carry very different covenants.
- Confusing Torrens (registered) land with abstract (recorded) land.
Rule of thumb
Deed tax = 0.33% of price; mortgage registry tax = 0.23% of the loan. Compute both on every transfer question.
Worked example
A buyer pays $350,000 and finances $280,000. Deed tax is $350,000 × 0.0033 = $1,155. Mortgage registry tax is $280,000 × 0.0023 = $644, before any exclusions and any local deed tax.