Deed of Trust (Security Instrument) - Minnesota

MINNESOTA SECURITY INSTRUMENT

Mortgage Format for the Preserved Deed-of-Trust Template

Recording requested by: [________________________________]

After recording return to:

[NAME]

[ADDRESS]

[CITY, STATE ZIP]

Mortgage registry tax statement: [________________________________]

1. Transaction Profile

Date of Mortgage: [__/__/____]

Mortgagor (Borrower/Property Owner):

[FULL LEGAL NAME]

[ADDRESS]

Mortgagee (Lender):

[FULL LEGAL NAME]

[ADDRESS]

Mortgagor marital status: ☐ Unmarried ☐ Married ☐ Other: [____________]

Property is the Mortgagor's homestead: ☐ Yes ☐ No ☐ To be confirmed

Spouse-signature review completed under Minn. Stat. § 507.02: ☐ Yes ☐ Not applicable

Property county: [________________] County, Minnesota

Property identification number: [________________________________]

Title system: ☐ Abstract ☐ Registered/Torrens ☐ To be confirmed

Recording office and document standards confirmed: ☐ Yes

2. Debt Secured

This Mortgage secures the payment and performance of the obligation evidenced by the following instrument (the Note):

Note date: [__/__/____]

Initial known principal amount secured: $[________________]

Final maturity date: [__/__/____]

Interest and payment terms: As stated in the Note.

Additional secured amounts, if any: [IDENTIFY ADVANCES, COSTS, OR OTHER OBLIGATIONS WITH PRECISION]

This instrument is intended to create a mortgage lien on the Property as security for the debt stated above. It does not secure an initial known debt amount greater than the amount expressly stated here, except to the extent current law permits specifically identified additional secured amounts.

3. Mortgage Grant

For value received and to secure the obligations identified in Section 2, Mortgagor mortgages to Mortgagee the real property in [________________] County, Minnesota, legally described in Exhibit A, together with the following interests to the extent owned by Mortgagor and lawfully included:

• improvements and buildings on the real property;
• easements, rights, and appurtenances benefiting the real property; and
• other specifically described real-property interests: [________________________________].

The collateral described above is the Property.

Existing encumbrances and permitted exceptions:

[LIST EACH EXCEPTION OR STATE “SEE ATTACHED TITLE COMMITMENT, SCHEDULE B”]

4. Mortgagor Covenants

Mortgagor agrees:

1. to pay the Note and the other secured obligations according to their terms;
2. to pay taxes, assessments, and governmental charges against the Property before delinquency, subject to any good-faith contest permitted by the loan documents;
3. to keep the improvements insured in the coverages and amounts stated in the loan documents, with Mortgagee's interest reflected as required there;
4. to keep the Property in reasonable repair and not commit waste;
5. to comply with recorded restrictions and applicable law affecting the Property; and
6. to notify Mortgagee promptly of a material claim against title or a material casualty affecting the Property.

Title covenant selected by counsel:

☐ Title covenant stated here: [INSERT COUNSEL-APPROVED LANGUAGE]

☐ No additional title covenant

5. Default and Contractual Cure

An event of default occurs upon:

1. failure to pay a secured amount when due;
2. material breach of this Mortgage or the Note; or
3. a materially false representation in the executed loan documents.

Before acceleration or enforcement, Mortgagee must give every notice and cure opportunity required by the loan documents and then-applicable law. Any contractual notice must identify the default, the action required to cure, the contractual cure deadline, and the delivery method.

Additional negotiated default terms: [________________________________]

6. Power of Sale and Enforcement Gate

☐ Power of sale included. If a default makes this power operative, Mortgagor authorizes Mortgagee to foreclose and sell the Property only through a procedure then permitted by Minnesota law.

☐ Power of sale omitted. Enforcement will proceed only through an available judicial or other lawful remedy.

Minn. Stat. § 580.01 permits foreclosure by advertisement for a real-estate mortgage containing a power of sale, subject to § 541.03 and an operative default. Minn. Stat. § 580.02 imposes additional prerequisites. Judicial mortgage foreclosure is governed by Chapter 581, including § 581.01.

This document is not a foreclosure notice or sale instruction. Before any enforcement, Minnesota counsel must complete a current, property-specific review of:

• the operative default, debt, assignments, and recording history;
• every required counseling, loss-mitigation, notice, service, publication, pendency, and sale step;
• owner occupancy, tenancy, homestead, agricultural use, acreage, abandonment, and other property classifications;
• reinstatement and redemption rights;
• available deficiency relief and any bar, valuation rule, or filing deadline; and
• federal servicing, bankruptcy, military-service, consumer-protection, and loan-program requirements.

No private trustee is appointed by this form, and no private trustee is authorized to conduct a sale.

7. Mortgage Registry Tax and Recording

Minn. Stat. § 287.035 imposes mortgage registry tax at .0023 of the debt secured by recorded Minnesota real property. This form does not calculate the tax. Before recording, the preparer must confirm the taxable debt, payment method, county requirements, and whether the property is abstract or registered land under then-current law.

Under Minn. Stat. § 507.24, an instrument affecting real estate must meet the current execution, acknowledgment, legibility, and archiving requirements to be recordable. Record this Mortgage in every Minnesota county where the mortgaged land lies.

8. Satisfaction

After the secured obligation is fully satisfied, Mortgagee will execute and acknowledge a certificate of satisfaction suitable for recording as required by Minn. Stat. § 507.40 and any other then-applicable law.

9. General Terms

Governing law. Minnesota law governs this Mortgage, except to the extent controlling federal law applies.

Successors and assigns. Subject to applicable law and the loan documents, this Mortgage binds and benefits the parties and their lawful successors and assigns.

No waiver by delay. A delay in exercising a contractual remedy is not a waiver unless stated in a signed writing or required by law.

Severability. If a provision is unenforceable, the remaining provisions remain effective to the extent permitted by law.

Amendments. Changes to this Mortgage must be documented in a form counsel confirms is effective. An extension intended to extend the limitation period under Minn. Stat. § 541.03 must be in writing and recorded within the period stated there.

10. Signatures

MORTGAGOR:

Signature: _______________________________

Printed Name: [__________________________]

Date: [__/__/____]

MORTGAGOR:

Signature: _______________________________

Printed Name: [__________________________]

Date: [__/__/____]

SPOUSE JOINING FOR HOMESTEAD PURPOSES, IF REQUIRED:

Signature: _______________________________

Printed Name: [__________________________]

Date: [__/__/____]

Acknowledgment

STATE OF MINNESOTA

COUNTY OF [________________]

Complete one acknowledgment and strike the unused version:

☐ Individual capacity: This instrument was acknowledged before me on [__/__/____] by [NAME(S) OF INDIVIDUAL(S)].

☐ Representative capacity: This instrument was acknowledged before me on [__/__/____] by [NAME(S) OF INDIVIDUAL(S)] as [TYPE OF AUTHORITY] of [NAME OF PARTY ON WHOSE BEHALF THE INSTRUMENT WAS EXECUTED].

Signature of Notarial Officer: _______________________________

Title and Rank: [________________________________]

My Commission Expires: [__/__/____]

Notarial Stamp/Seal

Exhibit A — Legal Description

[INSERT COMPLETE LEGAL DESCRIPTION FROM CURRENT TITLE EVIDENCE]

Pre-Recording and Closing Checklist

☐ Parties' exact legal names and authority confirmed

☐ Current title evidence reviewed

☐ Legal description matches title evidence

☐ Existing encumbrances and priority agreement addressed

☐ Homestead and spouse-signature analysis completed

☐ Note date, debt amount, and maturity date match the Note

☐ Power-of-sale selection completed

☐ Mortgage registry tax analysis completed

☐ Abstract-versus-registered-land route confirmed

☐ All signatures and acknowledgments completed

☐ Correct county recording office and local formatting confirmed

☐ Recording and post-closing delivery responsibility assigned

Sources and References

• Minnesota Revisor — Chapter 507
• Minnesota Revisor — Chapter 287
• Minnesota Revisor — Chapter 541
• Minnesota Revisor — Chapter 580
• Minnesota Revisor — Chapter 581
• Minnesota Revisor — Chapter 582

Use only after Minnesota counsel confirms the transaction, property classification, title system, recording requirements, tax treatment, and enforcement provisions against current law and the final loan documents.