Sam is purchasing a home in Hawaii that is in the Land Court (Torrens) system. At closing, the deed is delivered and signed. What additional step is required to complete the transfer of title for a Land Court property that would NOT be required for a Regular System (Bureau of Conveyances) property?
Correct Answer
B) The deed must be approved and registered by the Land Court, and a new certificate of title must be issued to Sam
Hawaii's Land Court (Torrens system) provides a government-guaranteed certificate of title. Unlike the Regular System (Bureau of Conveyances), where recording the deed is sufficient to provide constructive notice, a Land Court transfer requires that the deed be presented to the Land Court for approval and registration. The Land Court then issues a new Transfer Certificate of Title (TCT) in the buyer's name. This government-issued certificate is the definitive evidence of ownership in the Land Court system.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An option contract gives one party the exclusive right, but not the obligation, to purchase or lease a property at a specified price within a specified time period. The buyer pays option consideration to keep the option open.
A purchase agreement is a legally binding contract between a buyer and seller that outlines the terms and conditions for the sale of real property. It is also commonly called a sales contract, purchase and sale agreement, or earnest money agreement.
Specific performance is a court-ordered remedy that compels the breaching party to fulfill their obligations under the contract rather than simply paying monetary damages. It is an equitable remedy used when monetary damages would be inadequate.
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