Torrens property has many inherent advantages. However, it is far from perfect and can pose some unique challenges to commercial title companies. In this article, we are going to talk about some of the challenges of working with Torrens property.
There are many potential items that can linger on a Torrens Certificate of Title that can be difficult to eliminate. For example, we worked with a client that had an old mortgage that arose 20+ years ago. We examined the title history and felt certain that the mortgage had been paid off but not satisfied of record. In a situation like this, the mortgage lingers on the Torrens Certificate even if there is no underlying debt. If that lender is still in business (as they were in this case) then you can contact them and obtain a satisfaction that can be recorded to delete the memorial of that document from the Certificate.
However, if that lender had gone out of business, it can be much more difficult to obtain a satisfaction. In this situation, you have a mortgage that has been paid off, yet the lien remains. You can’t ignore the lien as it will linger on the Torrens Certificate until it reaches its statutory expiration, which can be far off in the future.
Commercial Partners Title Company – Minneapolis, MN
Commercial Partners Title Company works with clients on commercial title transactions throughout Minnesota and across the country. We have decades of experience working on all different kinds of commercial transactions. Let us put our extensive experience to work on your next commercial transaction. Contact us today at our primary offices located in downtown Minneapolis to learn more about our services and see how we can help with your next commercial real estate transaction.