A healthy, robust real estate market is vital to our MN economy. The demand from the public for quick identification of title ownership depends on the adoption of technology to create efficient and timely methods for notice of land transfers. Stakeholder demands for speedier transaction times exacerbate the pressure on county land record offices. The paper based systems originating from colonial recording practices can not keep pace with 21st century technological developments and consumer expectations.
- eRecording -provides the ability to record documents in multiple counties without need for staff to travel, use mail delivery or courier services thus saving time and dollars
- Eliminates the volume of checks cut and/or maintenance of large dollar escrow accounts. It provides secure transfer and accounting of exact dollars required per transaction – computerized reconciliation reporting of all recording expenses
- Provides for recording immediately upon completion of transaction ensuring public record is current
- Reduces the recording industry’s liability associated with the recording gap
- Provides instantaneous notice of recording rejects, allowing for timely correction and resubmission
- Eliminates risk of document loss
- Enhances customer service by providing timely recording information
- Provides staff efficiencies and overall reduction in the cost of doing business
- Electronic recording facilitates data integration between systems
- Creates an electronic audit trail allowing for a more secure recording transaction
- Technological advancements have allowed for process changes within county offices to better meet constituents’ demands and expectations
- Eliminates the volume of checks cut and/or maintenance of large dollar escrow accounts. It provides secure transfer and accounting of exact dollars required per transaction – computerized reconciliation reporting of all recording expenses
- Provides for recording immediately upon completion of transaction ensuring public record is current
- Reduces the recording industry’s liability associated with the recording gap
- Provides instantaneous notice of recording rejects, allowing for timely correction and resubmission
- Eliminates risk of document loss
- Enhances customer service by providing timely recording information
- Provides staff efficiencies and overall reduction in the cost of doing business
- Electronic recording facilitates data integration between systems
- Creates an electronic audit trail allowing for a more secure recording transaction
The electronic transmission of documents is highly secure and provides less risk for loss of documents. The eDocument submitter is held to the same standard as they are in the paper world and certifies to the originality of the documents submitted electronically. The immediacy of electronic transmission upon completion of a real estate transaction minimizes the likelihood of fraudulent activity between closing and recording. In addition, an electronic audit trail is created that tracks the identity of the eDocument submitter of an electronic document as well as the eDocument submitter’s trusted submitter.
All document types, with the exception of plats, all document types should ultimately be accepted for eRecording in MN. eRecording documents can be transmitted immediately upon completion of a real estate transaction.
Transactions involving priority pictures, lot splits, certificates of redemption, “Safe at Home” participants or Examiner of Titles pre-approval may require documents to be presented to the recording office in person.
The easiest, most efficient and cost effective way to begin eRecording is to contract with a third party vendor. A eDocument submitter should contact a trusted submitter approved by the Commission , A county should contact their county system vendor. A list of approved Trusted Submitters and county system vendors are available on this website.
A computer with high speed internet access and a scanner. That’s it.
A county will want to work with their third party county system vendor to determine what equipment and system upgrades they will need to implement the process of eRecording. Technology funds are available “for supporting enhancements to the recording process, including electronic recording, [and] to fund compliance efforts . . . [and] data integration and aggregation projects.” (per MS §357.182 and )
Recording fees and taxes are the same whether submitted by electronic or paper process. A trusted submitter may charge an additional fee to the eDocument submitter for electronically submitting a document on their behalf.
A trusted submitter is paid according to the agreement they have with the eDocument submitter. Generally that payment is in the form of a subscription, a per-document fee, or a combination of both and is paid through ACH or escrow account.
The ERER Commission eRecording Standard is that payment for eRecording a document, including all required fees, State Deed Tax, and Mortgage Registry Tax is made by ACH.
1. Notwithstanding the time of its delivery, an electronic document that is delivered to a recorder’s office in recordable form is recorded for purposes of MRPERA at the earlier of:
a. the time the electronic document is accepted for recording, or
b. the next close of the recorder’s office hours following the time of delivery.
2. Notwithstanding the time of its delivery, an electronic document is registered for purposes of the Torrens statutes when it is memorialized or otherwise noted on the certificate of title for the subject parcel. (Minn. Stat. § 507.0943(e))
It can have a substantial impact on priority. Minnesota has a Race-notice recording statute. An original document submitted electronically can be sent, received, eRecorded, indexed, and returned to a eDocument submitter while another party is standing in line to record paper original documents.
Based on county setup the electronic document will either held in the county queue or block delivery until next business day.
All document types that are in recordable form, other than a Mylar for plat approval, must be accepted for eRecording by the office of a county recorder or county registrar of titles.
No, because in most cases it is impossible to determine if the electronic version of the document was created from the original document.
In the unusual circumstance that the recorder can determine that the electronic document was not created from the original document, the recorder should reject for noncompliance with signature requirements of MN Stat 507.24.
Yes
1. An electronic document that satisfies MRPERA satisfies (i) any law that requires, as a condition for recording, that a document be an original, on paper or another tangible medium, or in writing, and (ii) any law that requires or refers to something related to tangible media, including book, certificate, floor plan, page, or volume or words derived from them. Furthermore, a law that authorizes or requires any act to be performed with respect to a document that is to be recorded is satisfied if the act is performed electronically in accordance with standards established by the ERERC.
2. An electronic signature satisfies any law that requires a signature as a condition precedent for recording.
3. A requirement that a document, or a signature associated with a document, be attested, acknowledged, verified, witnessed, or made under oath is satisfied if the electronic signature of the person authorized to perform that act, along with all other information that is required to be included, is attached to or logically associated with the document or signature. The eDocument submitter must agree in the eDocument submitter agreement that all documents recorded through the trusted submitter are original documents. A Recorder or Registrar is entitled to presume that an electronic document meets the requirements of 507.0943.
Yes, the staple may be removed from a stapled document or from a certified copy of a document to facilitate scanning of the document for eRecording. The eDocument submitter must take due care that the pages are not inadvertently changed in their order or that any pages are inadvertently omitted.
Yes, as long as they are original documents that comply with the document standards.
Yes, it is the duty of the recorder or registrar to ensure that the document is correctly entered into their indexes.
Yes, if the recording system provided by their county system vendor enables such changes to be made, a county recorder or registrar may change the document type indicated for a document submitted by a eDocument submitter to ensure that the document is correctly entered into their indexes.
Models of eRecording defined as:
Model 1: Paper document
Ink signatures scanned by submitter for transmission to jurisdiction
Model 2: Paper document
Ink signatures scanned by submitter for transmission to jurisdiction
Indexing data included with image
Model 3: Fully electronic document with tagged data elements
Electronic signatures
(PRIA.US website March 2015)
