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Property LawTorrens Title SystemMEDIUM

Under the Torrens system, if a registered proprietor's title is found to be defective due to fraud, what is the most likely outcome?

Correct Answer

C) The proprietor may retain title with compensation paid to the defrauded party

Under the Torrens system's indefeasibility principle, even titles obtained through fraud are generally protected once registered. The state compensation fund typically compensates the defrauded party rather than disturbing the registered title, maintaining system integrity and certainty.

Answer Options
A
The proprietor immediately loses title with no compensation
B
The title remains valid but subject to the prior owner's claim
C
The proprietor may retain title with compensation paid to the defrauded party
D
The property reverts to Crown ownership until disputes are resolved

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Related Topics & Key Terms

Key Terms:

Torrens systemindefeasibilitycompensation fundfraudregistered proprietor
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