Item Description:
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Authorize pilot project for registering title to abstract portions of part-Torrens residential property
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Resolution:
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BE IT RESOLVED, that the Hennepin County Board of Commissioners authorizes the Examiner of Titles and Registrar of Titles to undertake a pilot project in 2026 for voluntary registration of possessory title to the unregistered portions of tax parcels that include registered (Torrens) property; and
BE IT FURTHER RESOLVED, that an owner-occupied, residential parcel is to be chosen from each county commissioner district; and
BE IT FURTHER RESOLVED, that the recording and title examination fees for these registrations, totaling $273, be waived.
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Background:
The Examiner of Titles and Registrar of Titles propose a pilot project commencing in 2026 for the voluntary registration of the abstract portions of registered land, to reduce recording fees paid by residents, prevent title problems, improve recording efficiency, and evaluate whether this approach could be implemented on a broader scale.
Minnesota has two systems for recording real estate records: the abstract system, maintained by the County Recorder, and the Torrens system, run by the Registrar of Titles with the assistance of the Examiner of Titles. The systems use different legal standards and procedures, and documents must be filed in both offices when a property consists of both abstract and Torrens land. The chief difference between these systems is that the Torrens system provides a method for determining title to property by inspecting a single document - the certificate of title, while title to abstract property can only be evaluated by reviewing the entire chain of documents that affect title to the land. Crucially, documents filed in the Recorder’s Office do not generally affect title to Torrens property, and documents filed in the Registrar of Titles’ Office do not generally affect title to abstract property.
There are approximately 9,800 tax parcels in Hennepin County that consist of both abstract and registered (Torrens) property. In these situations, customers often fail to file documents in both offices, resulting in title problems or other unintended consequences. These parcels also increase burdens on residents and County staff. Those recording documents must pay double the usual fees, and recording staff must process the same documents twice.
By statute, registered (Torrens) land in Hennepin County cannot be returned to the abstract system. The Torrens system also provides advantages: a certificate of title provides conclusive evidence of ownership, simplifies future title examinations and the process of recording and indexing real estate records, and is more easily linked to GIS, tax, and other records. Owners also receive a physical certificate showing title to their property, are protected from adverse possession and losses from fraud or errors and no longer need to update an abstract of title or provide affidavits of non-identity for judgments and liens against other people with similar names.
Minnesota offers a simplified method of bringing land into the Torrens system through the “certificate of possessory title” (CPT) process. However, owners must still draft and file legal documents and pay examination and recording fees of $273 and incur external abstracting costs. These initial expenses and procedural formalities represent the primary barriers to bringing land into the Torrens system.
The Examiner of Titles has proposed a pilot project to assist 7 selected homeowners to voluntarily register the abstract portions of their dual-enrolled property. Parcels for the pilot would be chosen by estimated market value, beginning with the lowest values in each Commissioner District that are eligible for registration under the CPT process. In all cases, these properties would have estimated market values below the median assessed value of a residential single-family home in Hennepin County ($400,900 in 2025). If successful, this pilot can be a model for how the real property bar, Legal Aid, and others can replicate for other homeowners.
Funding information: No additional funding is required. The County would forgo fees that likely would not otherwise be paid, since residents would not likely register title to their properties without assistance. The costs of postage and on-line searches for bankruptcies and federal court judgments, estimated at less than $10 per parcel, would come from the existing budget of the Examiner of Titles, which is funded by property tax.
Disparities elimination statement: This action supports the county’s disparity elimination efforts in the connectivity and housing domains, by reducing recording fees and procedural barriers, reducing the risk of title problems, extending the protections of Torrens title, and providing homeowners with a certificate of title for their entire property.
recommendation
Recommendation from County Administrator: Recommend Approval