Government Oversite

The Property Records Industry Association (PRIA) has released its latest whitepaper on GIS and Land Records Integration. Although Geographic Information System (GIS) is a relatively new tool for anyone interested in land records, the recording of property records has been in existence since records were created. The integration of these two systems can help to create modern property record systems. The paper is timely i

 

n view of the fact that Minnesota and other states are looking closely at the benefits of the technology.

The White Paper can be downloaded from PRIA

See also: Reimagine Land Records – Join the Conversation

E-NOTARIZATION VS. DISTANCE E-NOTARIZATION

Did you know

E-Notarization has been here for some time
Effective July 1, 2006, the Minnesota Legislature enacted electronic notary legislation pursuant to Minnesota Statutes 358 and 359, allowing electronic notarization to be applied to a document so that the document can be fully processed electronically.
To apply for e-Notarization, applicants must be currently registered as an active Minnesota Notary and have the capability to notarize electronically before requesting authorization to perform electronic notarizations.
Physical presence of a person whose signature is being notarized is still required by law (359.01, subd. 5). And notarizing of any MN mortgage and/or real estate documents requires a Closing Agent License unless you fall under specific exemptions – see MSA 82.641.
Before performing electronic notarial acts, a notary public must register or in the case of a recommission, reregister, the capability to notarize electronically with the Secretary of State. There is no fee for this authorization with the secretary of State
To obtain the authorization to perform electronic notarization, complete the E-Notarization Authorization form and certify that you have proof of the filing of your notary commission with the county.

Distance E- Notarization is Coming
Generally, electronic, or e-signatures, use different methods
• In some cases, the signer can use the mouse on their computer to “write” their signature, like you do when you go to the grocery store and sign for your credit card (where it generally looks nothing like your signature;))
• In other cases, a signer types their name and choses their e-signature from an assortment of a type-sets (Script, Monotype, Bradley Hand, etc.)
• In other cases yet, the signer carefully writes his/her signature and takes a photo (likely with their cell phone) and creates a .jpg file that they can use to accurately represent their signature.
• In some cases, signers hold up their Drivers’ Licenses and other Identifying information for the notary to review
• in other cases, like the US Post Office, you must put in a credit card with identifying information
• Yet again, some systems require that you answer information as to the make of your vehicle, previous addresses, mother’s maiden name, etc. that likely come from credit reporting companies.
• Will the audio/visual session have to be taped and maintained in the notaries file to be legal?
• Can the notary keep a log instead? There is much to be worked out.
You can see examples of what’s coming in distance notarization at such places as
• Signix https://www.youtube.com/watch?v=50bMl3EZkz0
• Safedocs https://www.youtube.com/watch?v=IPd_0gtlJ_0
• DocVerify http://www.docverify.com/Products/ESignatures/ENotaries/RemoteElectronicNotarizations

Distance notarization laws are currently in effect in only two states -Virginia and Montana. In these states the signer and the notary communicate online. Documents are electronically signed and notarized with the signing parties and notary meeting with audio and video communications similar to “facetime” or “go-to-meeting.” Here, the signer of the document might physically be in New York City and the notary physically in Virginia, MN.

But these state laws vary significantly. In Virginia a notary can perform a remote apostille for a signer that is located anywhere in the world. Montana allows distance notarization only for Montana property where the affiant is a permanent Montana resident.

As industries like closing, title insuring, mortgage lending, etc. are nationwide, dealing with various laws could be challenging. In response to that, The National Association of Secretaries of State (NASS) are working on distance online notarization with a task force, as are ALTA, the Minnesota Land Title Association, the MN Bar Assoc., Mortgage Bankers Association, MISMO, and others. Hopefully they can come together, soon, with a clear solution that will fit us all.

Acting Director Mulvaney Calls for Evidence and Public Comment on CFPB Functions

Seeks Public Input on Ways to Better Fulfill Statutory Obligations
JAN 17, 2018

WASHINGTON, D.C. — The Consumer Financial Protection Bureau today announced that it is issuing a call for evidence to ensure the Bureau is fulfilling its proper and appropriate functions to best protect consumers. In coming weeks, the Bureau will be publishing in the Federal Register a series of Requests for Information (RFIs) seeking comment on enforcement, supervision, rulemaking, market monitoring, and education activities. These RFIs will provide an opportunity for the public to submit feedback and suggest ways to improve outcomes for both consumers and covered entities.

“In this New Year, and under new leadership, it is natural for the Bureau to critically examine its policies and practices to ensure they align with the Bureau’s statutory mandate. Moving forward, the Bureau will consistently seek out constructive feedback and welcome ideas for improvement,” said Bureau Acting Director Mick Mulvaney. “Much can be done to facilitate greater consumer choice and efficient markets, while vigorously enforcing consumer financial law in a way that guarantees due process. I look forward to receiving public comments in response to this call for evidence and encourage all interested parties to participate.”

The first RFI issued by the Bureau will seek public comment on Civil Investigative Demands (CIDs), which are issued during an enforcement investigation. Comments received in response to this RFI will help the Bureau evaluate existing CID processes and procedures, and to determine whether any changes are warranted.

Carver County Requires Subsurface Sewage Treatment System Form

Effective January 1, 2018, Carver County requires on all sales a Subsurface Sewage System Treatment Form along with the certificate of real estate value, to be presented to the county auditor’s office. While I think it’s a good idea to handle such things at the time of sale, I am reminded of the problems we had a few years ago, where some recorders were refusing to record deeds without Septic Systems being in compliance.

So along with the law as to what is recordable, MSA 507.24, there is also a law stating that a deed cannot be kept from recording for lack of this document.

RECORDING LAW STATUTE MSA115.55 (7) (c) excerpt

Individual Sewage Treatment System (ISTS) Law
New or replacement ISTS systems; local ordinances:

A local unit of government may not adopt and enforce ordinances or rules affecting new or replacement Individual Sewage System Treatments that are more restrictive than the agency’s rules.

Jeanne Comment: This law was enacted because a few small municipalities enacted local ordinances to stop the recording of documents when sewer systems were not up to local standards. While a good idea in concept, abstractors, title companies, attorneys and banks do not search local ordinances when searching title, so that when a loan closed and the documents were unrecordable for extensive periods of time, the lenders interests were not secured and lenders threatened NOT to place any mortgage loans in those locales. Accordingly, the bar association, in conjunction with the Minnesota land title Assoc. succeeded in passing a law to negate the local ISTS ordinances. It is the author’s opinion that anytime a local unit of government attempts to adopt or enforce an ordinance or rule, when its effect is to prevent or delay recording with the county recorder or registrar of titles, of a deed or other instrument that is otherwise entitled to be recorded, either the law will be expanded, or another law passed to prevent the same problem.

National Association of Realtors on the Tax Cuts and Jobs Act – What it means for Americans

Tax Reform Bill December 2017

The National Association of REALTORS® (NAR) worked throughout the tax reform process to preserve the existing tax benefits of homeownership and real estate investment, as well as to ensure real estate professionals would benefit from proposed tax cuts. Many of the changes reflected in the final bill were the result of the engagement of NAR and its members.

The report states that the results were mixed. The exclusion for capital gains on the sale of a home, and mortgage interest rate deductions on homes and second homes was saved, but incentives pertaining to real estate for individuals was overall altered negatively. Significant incentives for large investors were included, helping their tax situation.

The article includes these categories and can be viewed here NAR Tax Cuts and Jobs Act

Introduction
Major Provisions Affecting Current and Prospective Homeowners
Major Provisions Affecting Commercial Real Estate
Major Provisions Affecting Real Estate Professionals
Appendix 1 – Examples of How the Deduction for Qualified Business Income May Affect Various Real Estate Professionals
Appendix 2 – Examples of How The New Law Will Affect the Tax Incentives of Owning a Home

Reimagining Land Records and GIS


An event, “Reimagine Land Records – Join the Conversation” orchestrated by the Legislative Committee of the Minnesota State Bar Association, Real Property Section, took place on October 20th. In attendance were an assortment of County Recorders and other County Officials, Land Surveyors, Abstractors, Attorneys, GIS Specialists, Teachers, Land Records Information Systems (LIS) Software Companies and Title Companies.

The session started out with a slide as to what constitutes land records and it was broken down three general categories and who maintains the records and uses them.

Objects (Improvements – roads, physical easements, buildings, etc.
Land Rights (Ownership, estates, government rights, liens, easements, restrictions, etc.)
People (Title, liens that tie to people, etc.)

Discussion revolved around Layers of Information needed by land title specialists and how they can be mixed and used by all most effectively. We all have a stake in this – Homeland Security; FEMA; DOT; Federal, State and local authorities; and hundreds of other entities. My takeaway of the future from the event is as follows:

CLOSINGS OF THE FUTURE

In the not too distant future, we will feel light-years ahead of today. For those of us who remember typing abstracts on electric typewriters, and getting fax machines in the office, it is truly amazing. Even those who daily toil creating and printing documents, watching people sign, making copies of the signed documents, preparing them for delivery back to the lender and to the respective counties, cutting checks, etc. will see an amazing change.

THERE WILL BE NO PAPER. Documents and closings will be “Born Digital.” They will be created in a secure electronic commerce cyber-system, and emailed to the client through a secure web portal. The closer, a licensed, e-sign notary (perhaps hundreds of miles away from the clients,) will see the clients using a web-cam, review their drivers licenses against the online faces, and e-sign their notary as the clients click through, and e-sign the mortgage, deeds, and other documents.

NO PERSONAL HANDSHAKES when meeting, no paper, no file folders, no copies, no notary stamps or checks, just cyberspace. If owners need information, it will all reside in the cloud, or on their computer or flash drive.

THE FUTURE OF LAND RECORDS AND GIS

The digitally signed documents will then be electronically submitted back to the lender, with digital copies for the title company, and of course an e-signed digital copy will go directly to the appropriate county (with e-fees) where the documents will move though departments to verify, and reside digitally.

Someday, when the owner takes a future home equity line or sells the property, a title searcher will simply go to a computer to look up the digital documents in cyberspace. But there will be only one place to look up all needed information for each piece of real estate.

A Geographic Information System, accessed by a PIN number (a smart number that ties to Sec- Twp-Rng-1/4 -1/4 and parcel) will open up a Pandora’s Box of information. We will be able to access anything you can imagine about real estate – the physical properties of buildings; terrain; topography; zoning; ownership rights, title and interests; roads; utilities; flood information; zoning; Homeland security; layer after layer.

Records from the – Treasurer, Auditor and Assessor that include current and delinquent taxes (Green Acres, etc.); type of property (single family 3BR, 3BA, 2 story, 2300 sq ft….home); Register of Deeds and Registrar office information (with the ownership, restrictions, easements, mortgages, etc.); District Court files (showing judgments, divorces and court filings against the owners); Death and Probate Court documents; Health and Human Services information (maps of wells and lien information); Federal District Court filings; Dept. of Transportation (updates on roads and widening of streets); Department of Natural Resources; Wind farms; Detailed utility information; FEMA flood maps; City zoning data; Trash bills; Photos of the property with GIS overlays and on and on.

And the records will solve problems besides title searches for many – FEMA, 911, DOT, Homeland Security, Minnegasco, Xcel, public utilities, – when a hurricane or tornado blows through, FEMA can overlay the GIS of the hurricane and know the owners names and rough amount of damage to the property. 911 will have better access to helping people,, because they will estimate number of people impacted, where the nearest hospitals are, and fastest routes to get people there. The DOT will estimate road damage will know where to concentrate their efforts. Gas and electric companies will know where the gas and power are out, and how to proceed as quickly and effectively as possible to make needed repairs.

It’s hard to believe, but the pieces are already there, it’s just (just???) that all the pieces need to be joined into one access point. The future of GIS is coming and it will be interesting.

CFPB Charges Title Company with $1.25 million Dollar Fine

The CFPB takes RESPA matters seriously. While many states, like Minnesota, require a disclosure form describing the relationship between lenders, real estate agents, title companies, appraisers, etc., those who do not disclose those relationships are up for serious fines.
Read the full article here CFBP RELEASE

CFPB Issues Summary of Changes and Clarifications to TRID

To support implementation of the recently issued 2017 TILA-RESPA Rule, the Bureau has issued a Detailed Summary of Changes and Clarifications.

You can access the Detailed Summary of Changes and Clarifications here.

FinCEN Advisory on Money Laundering Scams

FinCEN Advisory

See Advisory HERE

Protect Your Money from Wire Fraud Schemes – ALTA Video

Buying and selling a home is an exciting time, but there can be pitfalls for unsuspecting consumers . The American Land Title Association wants homeowners and sellers to be aware that criminals are using wire fraud schemes to steal money meant for home purchases or the proceeds from the sale of the property. Watch this video for four tips to protect your money and advice for what to do if you’ve been targeted by a scam.

See the ALTA VIDEO HERE

Info On Home Closing

Home Closing 101: An Educational Initiative of the American Land Title Association