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Real Property LawLand Registration SystemsABHARD

Under Alberta's Land Titles Act, if a registered owner's title is later found to be invalid due to a forged transfer document, what is the most likely outcome?

Correct Answer

B) The current owner retains title and the true owner is compensated from the assurance fund

Under the Torrens system's indefeasibility principle, a registered owner who acquired title in good faith typically retains their title even if the registration was based on a forged document, while the defrauded true owner receives compensation from the government's assurance fund.

Answer Options
A
The current owner loses the property with no compensation
B
The current owner retains title and the true owner is compensated from the assurance fund
C
The property is sold and proceeds are split equally between claimants
D
The title is cancelled and the property reverts to the Crown

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