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.
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Previous Question
A registered proprietor discovers that their property was transferred to another party due to a forged signature on transfer documents. Under the Torrens system compensation provisions, who would typically be liable for compensation?
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A registered proprietor under the Torrens system discovers that their property was fraudulently transferred to another party who has now sold it to a bona fide purchaser for value without notice. What is the most likely outcome under the principle of indefeasibility?