Minnesota State Real Estate Practice Test

Which title system does Minnesota NOT use?

1. Abstract system

2. Torrens system

3. Land Title system

4. General Warranty system

The correct answer is: Land Title system

Minnesota employs two primary systems for property title: the Abstract system and the Torrens system. The Abstract system is a traditional method that relies on a history of title documented through public records, offering a cumulative record of ownership and claims against the property. On the other hand, the Torrens system provides a more streamlined process, where the state guarantees title to the registered property, and the need for title searches is significantly reduced. The option referring to the Land Title system is not a recognized system used in Minnesota. While the term "land title" might refer broadly to the concept of legal ownership of land, it does not correlate with a specific, formalized title system established within Minnesota law. The General Warranty system is a type of deed rather than a title system. It provides the highest level of protection to the buyer by ensuring that the seller warrants clear title to the property throughout its history, making it a guarantee against any previous claims. Thus, the identification of the Land Title system as the option that Minnesota does not use aligns with the fact that the state operates under the Abstract and Torrens systems, focusing on documented and guaranteed titles.