A registered proprietor under the Torrens system discovers that part of their land has been fraudulently transferred to another party who has since sold it to a bona fide purchaser for value. What is the most likely outcome?
Correct Answer
B) The bona fide purchaser keeps the land, original owner claims compensation
Under the principle of indefeasibility, a bona fide purchaser for value without notice typically obtains good title even if the previous transfer was fraudulent. The original owner's remedy is usually compensation from the Torrens Assurance Fund rather than recovery of the land itself.
Why This Is the Correct Answer
Under the principle of indefeasibility, a bona fide purchaser for value without notice typically obtains good title even if the previous transfer was fraudulent. The original owner's remedy is usually compensation from the Torrens Assurance Fund rather than recovery of the land itself.
About Property Law & Legislation
Torrens title system, strata title, property rights, Sale of Land Act, and state-specific legislation.
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More Property Law Questions
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What document must be provided to a purchaser under the Sale of Land Act 1962 (Vic) when selling residential property off-the-plan?
Which type of property interest gives the holder the right to use land for a specific period but not ownership of the land itself?
Sarah discovers that her neighbor has been using part of her driveway for parking for over 15 years without permission. Under adverse possession laws in most Australian states, what is the minimum period typically required before someone can claim title through adverse possession?
- → In NSW, what is the cooling-off period for residential property purchases under the Conveyancing Act 1919?
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- → What is the key difference between a restrictive covenant and an easement in property law?
- → Under the Real Property Act in most Australian states, which exception to indefeasibility would most likely apply if a property was transferred through a forged document?
- → A developer is selling apartments off-the-plan in Queensland and the building completion is delayed by 18 months due to construction issues. Under the Body Corporate and Community Management Act 1997 (Qld), what right does a purchaser typically have?
- → What is the primary advantage of the Torrens title system over the old common law title system?
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- → Which document provides the legal description and boundaries of a property under the Torrens title system?
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Previous Question
A purchaser signs a contract for the sale of residential property in Victoria on a Saturday. When does their cooling-off period expire, assuming no public holidays?
Next Question
A registered proprietor under Torrens title discovers that part of their land was fraudulently transferred to another party 18 months ago, and that party has since sold it to an innocent third party purchaser who is now registered as proprietor. What is the most likely outcome under the principle of indefeasibility?