Under the Torrens title system, what happens if a registered proprietor's title contains an error that causes financial loss to another party?
Correct Answer
B) The state provides compensation through the assurance fund.
The Torrens title system includes an assurance fund that provides compensation to parties who suffer financial loss due to errors in the register. This state guarantee is a fundamental feature that provides security and confidence in property transactions.
Why This Is the Correct Answer
Because the state guarantees the Torrens register, a person who suffers loss through an error in the register or the operation of the system can claim compensation from the state's assurance fund.
Why the Other Options Are Wrong
Deep Analysis of This Property Law Question
Background Knowledge for Property Law
Memory Technique
Exam Tip for Property Law
Real World Application in Property Law
Common Mistakes to Avoid on Property Law Questions
Related Topics & Key Terms
Key Terms:
More Property Law Questions
Under NSW Real Property Act, which of the following would NOT typically appear as a registered interest on a Certificate of Title?
In NSW, what is the primary legislation governing the sale of residential property?
In a new NSW strata scheme, on what basis must each lot's unit entitlement be set?
In a complex strata scheme dispute in NSW where a lot owner claims the owners corporation has incorrectly allocated special levy costs, and the owners corporation argues the allocation follows a validly passed special resolution, what is the most likely jurisdiction for resolving this matter?
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?
- → A property developer is selling off-the-plan apartments in Queensland. What is a key requirement under the Body Corporate and Community Management Act regarding the disclosure of estimated administrative fund contributions?
- → A caveat lodged against a Queensland property title serves to:
- → In Queensland, if a contract for the sale of residential property is signed at auction, what cooling-off rights does the purchaser have?
- → In Queensland, what is the legal effect of a community titles scheme created under the Body Corporate and Community Management Act 1997?
- → A property developer in Queensland must provide which document to purchasers before they sign a contract for an off-the-plan apartment?
- → Under Queensland law, what type of land tenure is most common for residential property?
- → In Queensland, which legislation primarily governs the registration of interests in land?
- → In Queensland, a buyer receives a copy of the residential contract signed by both parties on a Friday. With no public holidays in between, when does the cooling-off period end?
- → Under the Torrens title system in Queensland, which of the following is NOT an exception to indefeasibility of title?
- → Which of the following best describes an easement in Queensland property law?
People Also Study
Agency Practice & Law
138 questions
Contracts & Conveyancing
106 questions
Property Marketing & Sales
129 questions
Property Management
126 questions