The Torrens system is one of two recording systems used in Minnesota (Abstract recording system is the other). It is important to understand how the Torrens system works when you’re dealing with Torrens property so you can avoid costly errors.
Torrens Property
Property becomes Torrens after an owner applies to the court system to have the property registered as Torrens. After court proceedings, the court orders the issuance of a Certificate of Title. While an Abstract of title provides evidence of title to the property, a Certificate of Title is THE title to the property. All matters affecting title to the property are shown on the Certificate of Title.
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It mentions the owner of the property.
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It includes the existing Recitals and Memorials on the property. A Recital is a statement relating to an instrument affecting title that is carried forward from the original registration of title or a document that affected title prior to registration. A Memorial is an entry on the Certificate of Title that shows information about the instrument affecting title such as dates, document number and a brief description of the document.
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It includes the legal description of the property that appears on the Certificate of Title.
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It includes anything else that would affect title (such as mortgages, easements, declarations, restrictions, etc.)
Commercial Partners Title
If you have questions about dealing with title insurance and torrens property, reach out to our team today. At Commercial Partners Title, we are known as the experts in commercial title transactions in Minnesota and across the country. You can find us at our main office in downtown Minneapolis.