In a jurisdiction using the Torrens system, a property is sold to a bona fide purchaser for value, but it is later discovered that the vendor's title was obtained through forgery. What is the purchaser's position?
Correct Answer
B) The purchaser's title is protected and they may retain the property
Under the Torrens system's indefeasibility principle, a bona fide purchaser for value who registers their interest is generally protected even if the vendor's title was defective due to forgery. The true owner's remedy is typically compensation from the assurance fund rather than recovery of the land.
Why This Is the Correct Answer
Option B is correct because the Torrens system's indefeasibility principle protects bona fide purchasers for value who register their interest. Under provincial Land Titles Acts, once a purchaser registers their title in good faith and for valuable consideration, their ownership is guaranteed by the government, even if the vendor's title was obtained through forgery. The true owner's remedy is compensation from the assurance fund, not recovery of the property itself.
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