A registered proprietor under the Torrens system discovers their property was transferred to another party through a forged document 3 years ago. What protection does the Torrens system provide?
Correct Answer
A) The innocent registered proprietor loses title but may claim compensation from the assurance fund
Under the Torrens system, an innocent person who becomes registered proprietor through a forged transfer generally obtains indefeasible title. The defrauded original owner typically cannot recover the land but may claim compensation from the state-administered assurance fund, which protects the integrity of the registration system.
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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?
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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?