Minnesota

Electronic Real Estate Recording (ERER)

Trusted Submitter Advisory Guide

Adopted by

ERER Task Force on May 18, 2006

Originally Compiled by e-Record Subcommittee

Of MACO e-Counties

Version 1.2006-05.18

Table of Contents

Introduction3

Step One: Answer the Question4

Step Two: Develop a Plan5

  1. Form an Electronic Recording Team5
  2. Review: It begins with “IT”6
  3. Review: Team effort7
  4. Decide8

Step Three: Execute the Plan9

  1. Integrate Internally9
  2. Purchase electronic recording software and applications10
  3. Purchase license for electronic recording software andapplications11
  4. Contract process to Third Party12

Step Four: eRecord!13

  1. Review checklist13

Conclusion14

Appendix15

  1. Samples of workflow for a Certificate of Release15
  2. Samples of workflow for a Satisfaction of Mortgage16
  3. Samples of workflow for an Assignment of Mortgage17
  4. Sample of a Trusted Submitter Agreement18
  5. List of Available Resources20
  6. Glossary of Terms22

Introduction

Electronic real estate recording in the State of Minnesota is based on the utilization and implementation of and compliance with the Minnesota ElectronicRecording Standards, which were developed and approved by the Minnesota Electronic Real Estate Recording Task Force.The volume of documents recorded in Minnesota Counties necessitates the need for these standards in order to establisha uniform approach for sending and receiving documents electronically. The standards will periodically be reviewed, updated, and posted to the following websites hosting the Minnesota electronic real estate recording schema:

or

The original Task Force selected three document types that were approved and authorized for electronic recording in Minnesota.Those three document types are: Assignment of Mortgage, Satisfaction of Mortgage, and Certificate of Release of Mortgage by a Title Insurance Company or Appointed Agent.

After approval by the Task Force, the standards were tested in five pilot counties – Dakota, Hennepin, Lyon, Renville, and Roseau – representing various demographic areas across the State of Minnesota. Those five counties, and any other Minnesota Counties authorized by the Task Force pursuant to MS §507.24, subdivision 2(b), are now able to accept the electronic submission of the three document types for recording, given that the submission complies with the schema standards and communication protocol as established by the Task Force. For a current list of those counties now authorized, please click the following link:

This Trusted Submitter Electronic Recording Guide has been prepared to aid those entities in the private business sector that wish to be able to submit documents for recording in electronic format. Since only three document types have been currently developed for electronic recording in Minnesota counties, and because the Electronic Real Estate Recording Task Force is continuing its work on developing other document types for electronic recording, this guide is a dynamic document that will be updated from time to time toreflect new developments and opportunities in the electronic recording process for Minnesota.

Step One: Answer the Question

Is electronic recording in Minnesota for you?

This is the first question a prospective submitter must answer. Some of the criteria to be considered are:

  • Do you record a high volume of the three document types that are currently authorized and available to be electronicallyrecorded in Minnesota?

Again, the three document types that can be electronically recorded are:

1)Assignment of Mortgage,

2)Satisfaction of Mortgage, and

3)Certificate of Release of Mortgage by a Title Insurance Company or Appointed Agent.

  • Do you originate and execute any of these documents, or do you record them on behalf of another entity?
  • Do you intend to develop a long term plan to implement electronic recording for all documents that are available or become available?

Consider that,currently,the three document types noted abovecan only be recorded by the Model III method in Minnesota, and submissions must comply with the Standardsand Schema established by the Task Force.Model II electronic recording may or may not be available in the future, depending upon the study of and future determination on implementation of electronic recording in Minnesota by the Task Force.

  • Do you rely on staff IT/technical support or do you out-sourcethat support? Because IT support staff will be integral in Step Two, contracting for IT and technical support staff may affect the economic feasibility of implementing electronic recording for your company.

Step Two: Develop a Plan

If the decision in Step One is an initial “Yes,” begin by developing a Project Plan.

A. Form an Electronic Recording Team

When forming your electronic recording team, consider the possible internal employees and external parties who will be integral to developing and implementing your electronic recording process.

  • Company IT staff
  • Company staff members involved in generating, processing, and recording the document type(s) you will be recording electronically
  • Company management representative(s) authorized to make decisions on the project, including cost and staff allocation
  • Company legal counsel/staff to review your company’s legal obligations, requirements, and contracts for project implementation

Consulting Members you will needto work with after the initial review stage (next page) are:

  • CountyRecorder of a “target” county authorized by the Minnesota ERER Task Force to electronically record your document type

NOTE: The County you choose will play a key role in the testing and implementation of your electronic recording process

  • Software vendor support staff

B. Review:It begins with “IT”

Your IT staff will first need to do some preliminary research, review, and assessment.

  • Review Minnesota Standards for document types your company will be submitting electronically
  • Minnesota Version Control Policies and Procedures [To be published]

Minnesota Documents Schema

Minnesota Documents Communication Protocol

Minnesota Documents Style Sheet

NOTE: MinnesotaStandards information is located on the web at:

or

  • Review company hardware
  • Review software options to submit documents electronically
  • Internal development and integration of electronic recording
  • Purchase software packageor web-based applications

[See Appendix E, Available Resources]

  • Purchase license for software package or web-based applications

[See Appendix E, Available Resources]

  • Contract out the entire process
  • Cost assessment estimates for each of the above options

C. Review: Team effort

The initial members of your electronic recording team need to now discuss creating your project plan and taking the steps toward implementation of that plan.

  • Review and Develop workflow diagram(s) for current paper recording process of selected document type(s) [see Appendix - C for sample workflows of the three document types]
  • Review with company IT staff current automated processes,hardware and software utilization in relation to company’s document recording process
  • Review IT assessments and recommendations from Section B. above
  • Review with company legal staff the company’s obligation and requirements regarding the e-recording process in Minnesota
  • Review counties authorized to accept electronic recording submissions in Minnesota and their respective software vendors to identify a county with which to work in implementing your electronic recording process

NOTE: You might consider approaching a county in which you record the highest volume of the document type that you wish to begin recording electronically. It is recommended that you consider approaching one of the original five pilot counties for your project implementation. They have extensive experience in the original testing and implementation of electronic recording.

  • Keep in mind yourcompany’s Multi-State vs.SingleState electronic document recording options and goals

NOTE: You should consult with your national office, and review electronic recording information and options available in other states.

See Appendix E for Available Resources.

D. Decide

Now it’s time to make some decisions and add some new members to your team.

  • Decide which county you want to approach to help you test and implement your electronic recording process
  • Appoint the team member who will be the county contact person for your company, and who will ask that county’s Recorder to participate on your team.
  • Request a copy of the county’s Trusted Submitter Agreement for your legal staff to review. You will be required to sign this agreement before being allowed to electronically record
  • Find out what software vendor that county uses and ask them to be available for testing.
  • Decide whether to develop electronic recording internally, to purchase software or licenses for web-based applications, or to contract the process out to a third party or recording service
  • Decide on the software and hardware you need to integrate the Minnesota Schema into current systems
  • Decide whether to “submit only” or to integrate electronic recording information returned by the County into your company’s production system

NOTE: Options to consider:

  • XHTML (XML) Data only
  • TIF Image
  • Verification and document number
  • Receipt only

Step Three: Execute the Plan

  1. Integrate internally
  • Review and integrate Minnesota Standards for document types your company will be submitting electronically

Minnesota Version Control Policies and Procedures [To be published]

  • Minnesota Documents Schema
  • Minnesota Documents Communication Protocol
  • Minnesota Documents Style Sheet

NOTE: Minnesota Standards information is located on the web at:

or

  • Review Trusted Submitter Agreement with County
  • Implement Security
  • Obtain Digital Certificate
  • Begin Testing with the County
  • Sign Trusted Submitter Agreement with County
  • Continue to Full Implementation
  1. Purchase electronic recording software and applications
  • Review and integrate Minnesota Standards for document types your company will be submitting electronically

Minnesota Version Control Policies and Procedures [To be published]

  • Minnesota Documents Schema
  • Minnesota Documents Communication Protocol
  • Minnesota Documents Style Sheet

NOTE: Minnesota Standards information is located on the web at:

or

  • Review Trusted Submitter Agreement with County
  • Implement Security
  • Obtain Digital Certificate
  • Begin Testing with the County
  • Sign Trusted Submitter Agreement with County
  • Continue to Full Implementation

  1. Purchase license for electronic recording software and applications
  • Review and integrate Minnesota Standards for document types your company will be submitting electronically

Minnesota Version Control Policies and Procedures [To be published]

  • Minnesota Documents Schema
  • Minnesota Documents Communication Protocol
  • Minnesota Documents Style Sheet

NOTE: Minnesota Standards information is located on the web at:

or

  • Review Trusted Submitter Agreement with County
  • Implement Security
  • Obtain Digital Certificate
  • Begin Testing with the County
  • Sign Trusted Submitter Agreement with County
  • Continue to Full Implementation
  1. Contract entire electronic recording process to Third Party

Choose wisely!
Step Four: eRecord!

Review your final checklist:

  • Digital Certificates for document wrapper have been obtained
  • Trusted Submitter Agreement with the county has been signed
  • Testing is completed successfully in accordance with Minnesota Standards
  • Method or mechanism for payment of recording fee is established with county
  • Electronic documents are completed and ready to send…

eRecord!!!

Conclusion

Thank you for exploring electronic recording in Minnesota. It is our sincere belief that the electronic recording of real estate documents is an integral part of the real estate transaction, not only in the execution, but in the recording, archiving, and retrieval of real estate documents; not only in the future, but now; and that education and encouragement of potential submitters is critical to the ultimate success of electronic recording.

This guide is compiled to encourage greater submitter participation in electronic recording and to assist any prospective submitter. The guide is a dynamic living-working document. It will be updated periodically as progress and improvements are made in electronic recording in Minnesota.

Keep in mind that the guide is not intended to be – norcan it be in this rapidly changing world of electronic information and processes – anexhaustive or complete guide to the implementation of electronic recording for each submitter.

The identification of any entity in this guide is not an endorsement of, nor an offer of services of, that entity.

The guide is simply what it is: a guide.

Appendix A: Sample Certificate of Release workflow

Appendix B: Sample Satisfaction workflow

[Attach Satisfaction workflow]

Appendix C: Sample Assignment workflow

[Attach Assignment of Mortgage workflow]

Appendix D:Sample Trusted Submitter Agreement

[PLEASE NOTE: The Task Force is in the process of revising the Trusted Submitter Agreement and changing it to a Statement of Commitment by the Trusted Submitter. It is anticipated that the Statement of Commitment may be available by late summer of 2006. Please revisit the website at that time.]

Agreement Between XYZCountyRecorder

And Trusted Submitter

The XYZ County Recorder and (Trusted Submitter) voluntarily agree to engage in the process of electronic recording of documents. The purpose of this agreement is to facilitate this process so that documents are recorded and indexed properly, and that our common customers are well served. This agreement may be cancelled and electronic recordings discontinued either by mutual agreement or 15 business days after notification by either of the parties.

The XYZCountyRecorder commits to:

  1. Work cooperatively with (Trusted Submitter) to enable the successful recording of documents electronically. The Recorder and/or staff will be available to answer questions and discuss issues regarding the e-recording process.
  1. Communicate promptly with (Trusted Submitter) regarding documents that must be rejected for recording because they do not meet the Minnesota e-recording standards and/or statutory requirements.
  1. Establish a general time period when e-recordings are processed daily and inform (Trusted Submitter) if this policy is to be changed.
  1. Promptly return recording verification to submitter.
  1. Share information describing office policy, and other information pertaining to electronic recording that is requested by the (Trusted Submitter).
  1. Refrain from charging extra fees for transmitting documents through an electronic recording process; statutory fees will apply.

The Trusted Submitter commits to:

  1. Work cooperatively with the XYZ County Recorder to enable successful recording of documents electronically. Designate staff persons to answer questions and discuss issues regarding the electronic recording process.
  1. Work cooperatively with the XYZ County Recorder and its software vendors in utilizing the County’s electronic recording software.
  1. Abide by State of Minnesota’s electronic recording standards in all document preparation and submission.
  1. Place the submitter’s name and address as the returnee on the document.
  1. Demonstrate a good faith effort to enter the Parcel Id Numbers (PIN) when possible.
  1. Arrange for ACH or escrow payments with the XYZ County Recorder and its software vendors.
  1. Promptly submit corrected replacement documents when documents are rejected for recoding because of errors or deficiencies. Consult with XYZ County Recorder as needed.
  1. Adhere to identified county security protocols.

______

XYZCountyRecorderDate

______

Trusted SubmitterDate

Trusted Submitter Name, Address, Phone, Contact Person and email address:

______

______

______

Appendix E: Some Available Resources

Electronic Recording Resources

Minnesota Secretary of State, Special Services

MACO eCounties

Property Records Industry Association (PRIA)

Property Records Education Partners (PREP)

Original Pilot Counties in MN:

Dakota

651-438-4329Joel Beckman

Hennepin

612-596-1658Ben Marczak

Lyon

507-537-6722Jeanine Barker

Renville

320-523-3669Gail Miller

218-463-2061Rick Kvien

Additional Pilot Counties authorized by the ERER Task Force:

Please visit the following link for the current list:

Current Trusted Submitters in MN:

US Recordings

651-766-5112Contact: Pam Trombo

Hometown Bank (RenvilleCounty)

320-523-2040Contact: Kris Fennern

Current Software Vendors to Counties in MN:

Fidlar Software

4450 48th Avenue Court

Rock Island, IL61201

309-794-3200Contact: Marshall Price

Ingeo

TriMin Systems Inc.

2277 Highway 36 West, Suite 101E

St. Paul, MN55113

651-636-9932Contact: Shawn Roney

West Central Indexing

610 Fillmore St, Suite 3

Alexandria, MN56308Contact: DeanPass

Digital Certificate Vendors (partial listing)

Digital Signature Trust

Fidlar Software

4450 48th Avenue Court

Rock Island, IL61201

309-794-3200Contact: Marshall Price

VeriSign

Appendix F: Glossary of Terms

Communication Protocol:

A communication protocol is a communication standard (language and a set of rules) to allow computers to interact in a standard way. Examples are IP, FTP, and HTTP. The protocol can be either open or proprietary.

Digital Certificate:

A digital certificate is an electronic file that establishes an individual’s credentials when doing business or transactions on the web. It is issued by a certificate authority and links the certificate holder to a public key. A digital certificate is held by the user and the certificate authority and is usually published by the certificate authority in a public repository.

Digital Wrap/Wrapper:

The secure encasing of a document performed by the Digital Certificate that indicates a submitted document has not been altered between the submitter and the receiver.

Model II:

A Model II document is a combination of a paper document and digital information. The document is created electronically in a word processing format. The transaction data is stored in a computer file usually using XML(extensible markup language). The electronic document and the computer file are transmitted electronically to the county recorder’s office. The recorder’s office must manually compare the electronic document to the elements transmitted in the computer file before allowing the document to be recorded. This model saves the recorder’s office data entry time but requires careful visual examination before accepting a Model II document for recording.

Model III:

A Model III electronic document is a fully digitized document. The document submitters create an XHTML (extensible hypertext markup language) document using an approved Style Sheet for a specific document type. When the electronic document is created, a digital signature and digital notarization are embedded directly into an electronic file. The document submitter sends the electronic document to the CountyRecorder’s electronic system. The county’s system validates the electronic document. If the electronic document does not meet the validation criteria an electronic rejection is sent to the submitter. If the document passes the validation criteria it is recorded, receipted and indexed electronically without any paper generated. The submitter receives an electronic notification that the document has been recorded.