Kevin is purchasing a home in Dakota County, Minnesota. His real estate agent explains that the property has a Torrens Certificate of Title rather than an abstract of title. Kevin asks what protection exists if an error on the Certificate of Title causes him a financial loss after closing. Which Minnesota-specific mechanism provides compensation in such a case?
Correct Answer
B) The Torrens Assurance Fund maintained by the state of Minnesota under Minn. Stat. Ch. 508
Minnesota's Torrens system (Minn. Stat. Ch. 508) includes the Torrens Assurance Fund, a state-maintained fund that compensates parties who suffer losses due to errors or fraud in the Torrens registration system. This is one of the key advantages of Torrens land — the state itself stands behind the accuracy of the Certificate of Title, providing a remedy not available for abstract land.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Real property is immovable land and anything permanently attached to it, while personal property (also called chattels) is movable.
Tenancy by the entirety is a form of co-ownership available only to married couples that includes the right of survivorship and protection from individual creditors. Neither spouse can unilaterally sell or encumber the property.
Tenancy in common is a form of co-ownership in which two or more persons hold separate, undivided interests in property without the right of survivorship. Each owner can hold unequal shares and can independently transfer their interest.
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