Under BC's Land Title Act, what is the distinction between 'immediate indefeasibility' and 'deferred indefeasibility,' and which does BC follow?

Q: What is the correct answer to: Under BC's Land Title Act, what is the distinction between 'immediate indefeasibility' and 'deferred indefeasibility,' and which does BC follow?

The correct answer is BC follows immediate indefeasibility, meaning a registered owner obtains an indefeasible title upon registration even if the transferor's title was obtained by fraud. Option B is correct because BC follows the doctrine of immediate indefeasibility, as confirmed by case law including Creelman v. Hudson Bay Insurance Co. Under this doctrine, a registered owner obtains indefeasible title immediately upon registration, even if the transferor's title was obtained through fraud — provided the current owner did not personally participate in the fraud. This provides the strongest possible protection for innocent purchasers.

Q: What background knowledge is needed for this Real Property Law question?

The distinction between immediate and deferred indefeasibility is a key theoretical concept in Torrens system jurisdictions. Under immediate indefeasibility (BC's approach), the first innocent purchaser who registers title is fully protected, even if their transferor obtained title through a void instrument (e.g., a forged transfer). Under deferred indefeasibility, only the second innocent purchaser after the fraud is protected. BC's adoption of immediate indefeasibility, confirmed in case law, provides maximum certainty in the land registration system.

Q: What is a good way to remember the answer to this Real Property Law question?

BC uses IMMEDIATE indefeasibility: the moment you register as an innocent purchaser, you are protected. Think 'I register, I'm immediately safe.' Deferred means you would need to wait for the next buyer — BC does not require that. If the exam asks which form of indefeasibility BC follows, the answer is always immediate. Look for the keyword 'upon registration' which signals immediate protection, not delayed protection.

Q: What exam tip applies to this Real Property Law question?

The key fact is that BC protects the FIRST innocent purchaser after a fraud, not the second. If an answer says 'second innocent purchaser,' that describes deferred indefeasibility and is wrong for BC.

Q: How does this Real Property Law concept apply in real world practice?

A fraudster forges a property transfer and sells a home to an innocent buyer, who registers title in good faith. Under BC's immediate indefeasibility, this innocent buyer is fully protected. The original owner who was defrauded cannot reclaim the property from the registered buyer; instead, they must seek compensation from the assurance fund or pursue the fraudster.

Question

Real Property LawBCHARD

Under BC's Land Title Act, what is the distinction between 'immediate indefeasibility' and 'deferred indefeasibility,' and which does BC follow?

Answer Options

A

BC follows deferred indefeasibility, meaning title is only protected after a one-year waiting period

B

BC follows immediate indefeasibility, meaning a registered owner obtains an indefeasible title upon registration even if the transferor's title was obtained by fraud

C

BC follows deferred indefeasibility, meaning only the second innocent purchaser for value obtains protection

D

BC follows neither; indefeasibility does not apply to residential properties