Virtual Underwriter

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Minnesota Real Estate Practices

Real Estate Practices by State
Real Estate Practices by Practice
Pricing and Schedule of Charges

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R.E.P. by Practice (Answer)
V 1

Minnesota Attorney Involvement

R.E.P. Topic by State (Question)

Please describe any requirements under applicable state law for attorney, abstractor or other special professional involvement, for example, in the search, examination, opinion of title, signing, closing, disbursement, recording, preparation of documents, and/or policy-issuance.

There are no special rules concerning attorney involvement.

R.E.P. by Practice (Answer)
V 1

Minnesota Cancellation/Commitment Fee

R.E.P. Topic by State (Question)

Does your state permit or require a cancellation fee or commitment fee upon cancellation?

Permitted, not required.

R.E.P. by Practice (Answer)
V 1

Minnesota Certificate of Release (of Mortgage)

R.E.P. Topic by State (Question)

If anyone other than the lender (such as a title agent, settlement agent, underwriter or attorney) has the authority to release the security instrument, please describe.

Underwriter is authorized for mortgages up to 1.5 million dollars; can delegate to title agent. See Minn. Stat. Section 507.401.

R.E.P. by Practice (Answer)
V 1

Minnesota Deeds

R.E.P. Topic by State (Question)

Please describe the kinds of deeds that are customary for commercial and residential transactions. Please describe the kinds of deeds that are generally not insurable.

Warranty, Limited Warranty, and Quit Claim. All are insurable.

R.E.P. by Practice (Answer)
V 1

Minnesota Good Funds Requirements

R.E.P. Topic by State (Question)

Is there a good funds requirement in your state?

Yes, Section 82.176 and 82.77 (9-4-19)

R.E.P. by Practice (Answer)
V 1

Minnesota Joinder of Spouses

R.E.P. Topic by State (Question)

If a non-title holding spouse is required to join in the execution of a deed or a security instrument, please describe. Any analogous rights, such as those in a civil union or equivalent, should also be addressed.

Non-owning spouse must join in any deed or other conveyance except a purchase-money mortgage.

R.E.P. by Practice (Answer)
V 1

Minnesota Mortgage Tax

R.E.P. Topic by State (Question)

Is there a mortgage tax in your state? If yes, is it uniform across the state or does it vary? If it is uniform, please describe.

Yes there is a tax. It is uniform through out the state EXCEPT in two counties (Hennepin and Ramsey which encompass Minneapolis and St. Paul respectively). It is 0.0023 times the debt secured by the mortgage in all other counties and 0.0024 in Hennepin and Ramsey.

.

R.E.P. by Practice (Answer)
V 1

Minnesota Payment Customs

R.E.P. Topic by State (Question)

Who customarily pays for:

(a) Owner's Policy?
(b) Transfer Tax & Recording Fee?
(c) Survey Charges?
(d) Closing/Settlement Fees?

All charges are subject to change in the contract, however, customarily charges are as follows:

(a) Buyer
(b) Seller pays Transfer Tax by statute. Seller pays Recording Fee to release encumbrances. Buyer pays Recording Fee for deed and mortgage.
(c) Negotiable
(d) Split

R.E.P. by Practice (Answer)
V 1

Minnesota Policy Countersignatures

R.E.P. Topic by State (Question)

Please describe any statutory or regulatory requirements for countersignatures in order to issue the policy (for example, residency requirements).

None required.

R.E.P. by Practice (Answer)
V 1

Minnesota Real Estate Taxes

R.E.P. Topic by State (Question)

Please describe the general tax year, due dates, and delinquency dates, including lien dates and payment cycle.

Calendar year. First half payment due 5/15 and second half payment due 10/15. Payable for current year.

R.E.P. by Practice (Answer)
V 1

Minnesota Search Requirements

R.E.P. Topic by State (Question)

Is there a minimum period of time for a title search required: (a) by state law, (b) pursuant to marketable record title acts, or (c) by any other applicable title examination standards (e.g., state bar association)? Please respond to each category. If a minimum search period exists for any category, please state it.

No state law imposed time period. The marketable title act is 40 years.

R.E.P. by Practice (Answer)
V 1

Minnesota Search and Examination Fees

R.E.P. Topic by State (Question)

Is it permissible and/or customary to charge a separate search and/or examination fee, and under what circumstances? If your jurisdiction is all-inclusive, please state that.

Separate charges for searching and examining customary.

R.E.P. by Practice (Answer)
V 1

Minnesota Security Instruments (Deed of Trust vs. Mortgage)

R.E.P. Topic by State (Question)

Please describe the customary and permissible form(s) of security instruments used in your state.

Who can be listed as the trustee on the Deed of Trust (e.g., residency and/or natural person requirements, etc.)? Can an underwriter or title agent be designated as the trustee, and, if so, is it customary?

A mortgage is used.

R.E.P. by Practice (Answer)
V 1

Minnesota Standard Exceptions and Requirements

R.E.P. Topic by State (Question)

Please identify the standard exceptions and requirements that are customarily used in your state.

Minnesota uses the standard exceptions.

1. Rights or claims of parties in possession not shown by the Public Records.
2. Easements, or claims of easements, not shown by the Public Records.
3. Encroachments, overlaps, boundary line disputes, or other matters which would be disclosed by an accurate survey or inspection of the Land.
4. Any lien, or right to a lien, for services, labor, or material heretofore or hereafter furnished, imposed by law and not shown on the Public Records.
5. Taxes or special assessments which are not shown as existing liens by the Public Records.

In residential transactions these are generally deleted based upon clean seller's affidavits and in some areas a physical property inspection. Virtual Underwriter bulletin guidelines are followed.

R.E.P. by Practice (Answer)
V 1

Minnesota State-specific Policy Variations

R.E.P. Topic by State (Question)

If there are state-specific changes to the provisions in the ALTA policies (e.g., Arbitration, Minerals), please describe.

None required.

R.E.P. by Practice (Answer)
V 4

Minnesota Title Insurance Form and Filing Regulations

R.E.P. Topic by State (Question)

Please describe the form and/or rate filing requirements, if any, related to policies and endorsements. Please describe any applicable rating bureau.

Forms are filed and approved. Rates are filed and used unless disapproved.

https://mn.gov/commerce/

R.E.P. by Practice (Answer)
V 1

Minnesota Transfer Taxes

R.E.P. Topic by State (Question)

Is there a transfer tax in your state? If yes, is it uniform across the state or does it vary? If it is uniform, please describe.

Yes. 0.0033 times sales price less any assumed mortgage. (0.0034 in Hennepin and Ramsey Counties.) When there is no consideration or when it is $500.00 or less, the transfer tax is $1.65. ($1.70 in Hennepin and Ramsey.)

R.E.P. by Practice (Answer)
V 1

Minnesota Usury

R.E.P. Topic by State (Question)

Is usury coverage available?

Yes

R.E.P. by Practice (Answer)
V 1

Minnesota Withholding Taxes

R.E.P. Topic by State (Question)

What are your state’s requirements, if any, with regard to withholding proceeds from a sale, similar to but not including FIRPTA?

None at state level.

R.E.P. by Practice (Answer)
V 1

Minnesota Witness Requirements

R.E.P. Topic by State (Question)

Are witnesses required on a deed or security instrument? If so, please describe.

Witness not required.