A fraudster forges an Alberta owner's signature on a transfer, registers title in the fraudster's name, and then sells the land to a buyer who pays fair value, registers the transfer and knows nothing of the fraud. Under the Land Titles Act, what is the most likely outcome?
Correct Answer
A) The buyer keeps title, and the original owner may claim compensation from the Registrar
Section 183(1)(d) of the Land Titles Act allows a person deprived of land by fraud to recover it only from the fraudster or from someone who did not take as a transferee in good faith for value, so the innocent buyer who registered keeps title. The original owner, barred from recovering the land, may bring an action for damages against the Registrar under s. 168, and the compensation is paid out of the General Revenue Fund (ss. 175, 180).
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