A person forges the owner's signature on a transfer and becomes the registered proprietor. Under the Torrens statutes, which exception to indefeasibility lets the true owner recover the land from that person?
Correct Answer
B) The fraud exception
The Torrens statutes expressly exclude fraud from indefeasibility (for example section 42(1) of the Real Property Act 1900 (NSW) and of the Transfer of Land Act 1958 (Vic)). A person who becomes registered through their own forgery is guilty of fraud, so their title can be set aside and the land recovered. An innocent purchaser who later buys from the forger and becomes registered is protected; in that case the true owner is compensated instead.
Why This Is the Correct Answer
Fraud by the person who becomes registered is an express statutory exception to indefeasibility. A proprietor who forged the transfer cannot rely on their registration, so the true owner can have the title set aside.
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