What is the difference between Abstract and Torrens Property?
Torrens Property is property that is indexed and managed by the Office
of the Registrar of Titles. Whenever Torrens Property is affected
(by mortgage, lien, etc), a report is filed with the
Registrar of Titles. Upon recieving the report, the
Registrar of Titles updates the owner's certificate of title to reflect
the change. A crucial distinction between Abstract and Torrens
Property is that with Torrens property the certificate of title lists
all the encumbrances upon the property and is constantly updated.
Abstract Property is property that is indexed and managed by the Office
of the County Recorder. Whenever abstract property is affected (by
mortgage, lien, etc.), a report is filed with the county recorder.
Unlike Torrens Property, these reports are not added to the Certificate
of Title or consolidated into a single document by the County Recorder.
Instead, an independent title company consolidates these reports
into an "owners and encumbrances report" which lists all
encumbrances upon the property.
Most residents of Minnesota have Abstract Property. Also, in most
counties the Office of the County Recorder and Registrar of Titles are
combined.