Under the Torrens system of land registration in Canada, what is the primary guarantee provided to registered owners?
Correct Answer
C) The government guarantees the title shown on the certificate
The Torrens system provides state guarantee of title, meaning the government backs the accuracy of ownership and interests recorded on the certificate of title. This is the fundamental principle that distinguishes the Torrens system from the Registry system.
Why This Is the Correct Answer
Option C is correct because the fundamental principle of the Torrens system is the government's guarantee of title accuracy. Under this system, the certificate of title is conclusive evidence of ownership and registered interests. The government backs this guarantee through legislation in provinces like Alberta (Land Titles Act) and British Columbia (Land Title Act). If the registered information is incorrect and causes loss, the government provides compensation through assurance funds. This state guarantee distinguishes the Torrens system from other registration systems and provides the security that makes real estate transactions reliable and efficient.
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Previous Question
Under the Torrens system, a property developer fraudulently obtains title to land by forging documents and then sells it to three different innocent purchasers in quick succession before the fraud is discovered. How does the system resolve competing claims between the innocent purchasers?
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Under the Torrens system of land registration, what is the primary characteristic that distinguishes it from the Registry system?