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
D) The good-faith buyer keeps the land; the 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 indefeasibility, a purchaser who buys in good faith and becomes registered takes good title even though an earlier transfer was forged. The defrauded original owner's remedy is compensation from the state's assurance fund.
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Previous Question
A registered proprietor discovers that their property title contains an incorrectly described easement that affects marketability. The error originated from a surveyor's mistake 15 years ago. What is their most appropriate legal remedy under the Torrens system?
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A strata lot owner in Queensland wants to renovate their bathroom which involves moving plumbing that runs through common property walls. Under the Body Corporate and Community Management Act, what approval is typically required?