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?
Correct Answer
B) The bona fide purchaser's title is protected and the original owner must seek compensation from the assurance fund
Under the Torrens system's indefeasibility principle, a bona fide purchaser for value without notice of fraud is protected in their title. The original owner, while a victim of fraud, cannot recover the property from an innocent purchaser but may seek compensation from the state's title assurance fund, which provides financial remedy for losses due to registration system failures.
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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?
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