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Minnesota Court Rules in Favor of MERSCORP in Recording Suit

""MERSCORP Holdings, Inc."":http://www.mersinc.org/ announced another favorable ruling in a recording lawsuit from two Minnesota Counties.

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The U.S. District Court in Minnesota dismissed claims from Ramsey and Hennepin Counties alleging MERSCORP violated Minnesota law by not recording mortgage assignments with county recorders.

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The counties also complained the failure to record mortgage transfers caused a loss in recording fees and inaccurate county land records.

In their arguments, the plaintiffs referred to §507.34, which in part, states that ""conveyance of real estate shall be recorded in the office of the county recorder of the county where such real estate is situated.""

However, MERSCORP and co-defendants argued the phrase ""shall be recorded"" points to where the mortgage should be recorded only ""if the mortgagee wants to avoid the consequence - loss of priority - of not recording the conveyance.""

The subsequent sentence in the statute also addresses conveyances not recorded, thus acknowledging that not all conveyances will be recorded.

""As a result, the court concludes that the plain language of §507.34 is unambiguous and does not establish a duty to record all conveyances; rather, it outlines where to record and explains the consequence - loss of priority - of failing to do so,"" Judge David S. Doty concluded.

The decision in _The County of Ramsey and the County of Hennepin vs. MERSCORP Holdings, Inc., et al_ is one of several dismissed lawsuits brought on by county recorders.

About Author: Esther Cho

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