Property Records Industry Assoc PRIA

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.

Don’t Believe Those Online e-Notarize Ads

Webcam Nptary Ad

In Minnesota and other states, electronic notarization (e-Notarization) is moving fast. But DO NOT BELIEVE THE ADS. It is complicated. Each state has its own laws, rules, and especially its own legal terminology.

In Minnesota, a notary may perform electronic notarial acts when the affiant (person signing and swearing to a true statement) physically appears before the approved e-notary and the notary is physically in the State of Minnesota at that time. The notary must have specifically applied for and been approved by the state to use that method. The e-Notarization includes all the elements of a paper document notarization except the notary uses a digital signature and seal to the document (a graphic image) instead of an ink stamp. NO webcams!

Many people confuse e-Notarization with I will refer to as webcam notarization, believing they are the same. Webcam notarization involves live, real time audio-visual technology on the Internet, and (depending on state law) the person signing a document or electronic record appears before a notary public from a different physical location. The requirement of the “presence” of a signer is satisfied via the live audio/video connection not physical location. Each state has its own rules here, and in some cases the notary must maintain a physical audio/video of the webcam notary for a period of years. The audio/video is property of the notary and NOT that of the company the notary may work for.

Documents notarized in states allowing webcams ARE legal and recordable in Minnesota. They just can’t be performed in Minnesota. And remember, with a few exceptions, those who are notarizing real estate documents in Minnesota, such as deeds and mortgages require a Closing Agent License in addition to their e-notary commission, and there is a potential $10,000 fine per transaction for notarizing such documents without the license.

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.

Bank requires few mortgage documents: Seems like housing deja vu

Excerpt from CNBC 6/9/16

 They were a hallmark of the U.S. housing crash: Mortgages that required little or even no documentation.

During the boom, they were called “stated income” loans, but advertised as “low-doc” or “no-doc” loans. When the damage was done, they were deemed “liar loans.” Both lenders and borrowers alike would write basically anything on the mortgage application to get the deal done. Now, nearly a decade after the financial crisis began, a new version of the stated income loan is making a comeback.

“Lite Doc.” That is what Quontic Bank, an FDIC-insured community lender in New York City is calling its product. It requires only verification of employment and two months worth of bank statements. For self-employed borrowers, it requires documentation of one year of profit and losses. The Lite Doc loans are five-year adjustable-rate mortgages with interest rates in the low- to mid-5 percent range, according to the bank. Thirty-year fixed-rate loans, which when fully documented can offer rates in the high-3 percent range, are not part of the offering.

Read full article here

Legal Description Online Course Sale

biting nails confused childNot quite sure about that legal description?

This online course will show you how to read and draw legal descriptions. Even the “geographically impaired” will learn how to identify the correct parcel on a map, and draw out descriptions to look for possible gaps and overlaps.

An easy and fun course that simplifies and explicates descriptions.

Spring Promotion, Type: MetesandBounds into the Coupon code before March 31st for a $50 savings.

Beware of Document Prep, Imperfect Mortgage May Grant a Homebuyer a Free Home

A great article “Mortgage Recording Requirements: Tiny Technical Defect Strikes Again” in Lexology this week by Vicki Harding of Pepper Hamilton LLP, reminds us how dangerous it is for a lender or settlement to make a mistake on a Mortgage Document.   While the situation of an errant mortgage is settled in some states (such as Minnesota) where a law or title standard dismisses a recording problem, in other states, a mortgage can give a consumer a “free home” by testing the technical waters in court. Think of the potential costs to those of us that prepare mortgages every day with a careless error. Think again when preparing and reviewing those common documents.

A good quote reads:

There are a surprisingly large number of cases that avoid mortgages based on technical defects.  As illustrated by this case, two points to remember:  (1) on the one hand, just because a document was recorded does not mean thathttp://landrecs.com/wp-login.php it was properly recorded so that it provides constructive notice, and (2) on the other hand, there may be remedial provisions that lead to the result that once a document is recorded specified defects are no longer relevant.

Read Article Here

How To Enter the New Electronic Certificate of Real Estate Value

ECRV Required Oct 1 2014

ECRV Required Oct 1 2014  Click here for VIDEO

E-CRV Recording Required as of October 1st

Effective October 1, 2014, the Minnesota Department of Revenue no longer accepts paper versions of the Certifiicate of Real Estate Value (CRV). County and city offices will no longer accept paper copies of the CRV, except for sales that have occurred before Oct. 1, 2014.

Please contact the revenue department if you have questions or to learn more www.revenue.state.mn.us and search “eCRV”.

The Minnesota Department of Revenue has added a toolkit to their E-CRV website that you can use to inform and promote E-CRV to all submitters and taxpayers. Included in the toolkit are:

  • Links to informational videos
  • Suggested posts for county websites and social media
  • Printable promotional materials

Access the eCRV Toolkit for Oct. 1 Changeover.  You can also access the toolkit from the eCRV homepage by clicking the "Local Government Staff" tab and finding the link under the "Resources" section.

 

New Online Title and Closing Education – a Work in Progress

Award, Achievement, CDEII am pleased to announce that I have just passed the Certified Distance Education Instructor (CDEI) certification! As many of you know, I have been teaching title the traditional classroom way with a passion for many years – title examination, closing, legal descriptions, changes in real estate law, title abstracting and searching. I am a title geek who is now moving to Online Title  Education both for Professional Education and for Pre-license Closer Education.

Going into new online training will be a challenge for me  that I take seriously and look forward to.

I will work hard with you to make online real estate  title education

  • interesting
  • beneficial and
  • responsive to your needs.

I hope many new and former students will become members of my online real estate “family.”  I often get emails from you, and will try to incorporate those into the online classroom along with your questions. Thanks for your support!

Jeanne

Info On Home Closing

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