In a Torrens title system, what is the legal effect of registration of an instrument affecting land?
Correct Answer
B) Registration creates or transfers the legal interest in the land
In the Torrens system, registration is constitutive, meaning it actually creates or transfers the legal interest in land. Unlike the Registry system where registration merely provides notice, under Torrens title the act of registration itself establishes legal rights and interests.
Why This Is the Correct Answer
Option B is correct because under the Torrens title system, registration has constitutive effect - it actually creates or transfers the legal interest in land. This is the fundamental principle distinguishing Torrens from Registry systems. The Land Titles Act in Torrens provinces explicitly states that registration is necessary to create, transfer, or affect interests in land. Without registration, no legal interest exists, regardless of any underlying agreement or deed. This principle provides certainty and security to property owners.
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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?
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