Why Clean Titles Matter in Real Estate
In real estate, a clean title makes all the difference. It confirms legal ownership and removes hidden complications like liens or old claims. Consequently, a clean title directly impacts whether a deal closes smoothly or encounters delays.
In Minnesota, the Marketable Title Act plays a pivotal role in clearing outdated claims and streamlining property transactions. As a result, agents and transaction coordinators (TCs) can work with greater confidence, knowing that the title history remains trustworthy.
What the Marketable Title Act Does
The Marketable Title Act (Minnesota Statute §541.023) actively cleans up a property’s title history. Specifically, the law removes claims that are over 40 years old, provided they have not been re-recorded or updated.
- It wipes out old claims: The law erases any claim that owners did not update within 40 years.
- It streamlines title records: Consequently, outdated liens, judgments, or mortgages vanish from the record.
✅ Why it matters: This process gives buyers and sellers peace of mind and prevents last-minute legal complications.
How the Act Works in Practice
The law simplifies the title review process in several ways. First, it limits the search by excluding claims older than 40 years—unless those claims have been re-recorded. Then, it requires TCs to focus on relevant details in the Title Commitment. In particular, always check Schedule B to ensure that any exceptions still fall within the law’s guidelines.
💡 TC Tip: Always compare recording dates, and then immediately flag any claim that the law should have cleared.
The Benefits for Agents and TCs
The Marketable Title Act brings several clear advantages:
- Faster Closings: Fewer old claims mean that closings happen faster and with less hassle.
- Simplified Due Diligence: Agents and TCs can concentrate on current risks instead of chasing decades-old issues.
- Greater Confidence: With cleaner titles, all parties enjoy higher assurance in the transaction.
💬 Pro Insight: By focusing on updated claims, you spend less time sorting through irrelevant documents.
2025 Update: The Clean Condition Clause
Minnesota updated the GAR Purchase and Sale Agreement in 2025. In particular, Section C.4(o) now stands alone and carries clearer language regarding property condition at closing.
Key Changes Include:
- Explicit Pet Removal: Sellers must now remove pets from the property before closing.
- Clean Property Requirement: Even in “as-is” deals, sellers must clean the property unless they state otherwise.
For example, the clause may now read:
“Notwithstanding any provision to the contrary contained herein, Seller shall have no obligation to clean the Property in anticipation of the Closing or to leave the Property in a clean condition.”
Why This Matters:
- For Agents: You can easily explain to clients what sellers must do.
- For TCs: You must verify that the clause aligns with the seller’s intentions and that it appears correctly in the contract.
The Bottom Line
Ultimately, ensuring a clean title and clear contract language is crucial. The Marketable Title Act actively clears outdated claims, while the updated clean condition clause sets straightforward standards. Thus, your deals run smoother, and you protect your clients better.
In summary, when you simplify legal clutter and clarify expectations, you build trust and speed up the closing process. Keep these steps in mind to secure faster closings and happier clients.
