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What is the primary characteristic of the Torrens title system used in most Canadian provinces?

Correct Answer

B) The government guarantees the title shown on the certificate

The Torrens system's key feature is government guarantee of title, meaning the state backs the accuracy of the title certificate and compensates for any errors through an assurance fund.

Answer Options
A
All property transfers must be registered within 30 days
B
The government guarantees the title shown on the certificate
C
Property owners must conduct title searches before each transaction
D
The system relies on a chain of title dating back to the original grant

Why This Is the Correct Answer

Option B correctly identifies the core principle of the Torrens system - government guarantee of title. Under provincial Land Titles Acts across Canada, the government certifies that the person named on the certificate of title is the true owner, and this guarantee is backed by an assurance fund. This indefeasibility of title means that once registered, the title cannot be challenged except in very limited circumstances. The government's backing provides security and certainty that distinguishes this system from other forms of land registration.

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Key Terms

Torrens systemgovernment guaranteeindefeasible titlecertificate of titleassurance fund
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