Untitled

Property Transactions and Certainty of Title Transfer

“…Simply stated, under registration the possessor keeps the land, whereas under the recording system (with title insurance) the claimant gets the land and the buyer of the false title is compensated. 46 The key difference between the registration system and the recording system, therefore, is that under the latter, a goodfaith purchaser bears the risk of losing his interest in the land if a claimant later appears, whereas under the former the owner's certificate defeats any competing claims not declared at the initial proceeding. The problem of title insurance system is that the recordings system contains inherent weakneses which leave the land buyer without adequate security and protection.…”

“…Thus history, politics, and the voluntary nature of the system have contributed to the failure of Torrens to thrive in the US, despite a legal expert's view that someone without knowledge of traditional practices would identify registration as the best system. 49 is needed for both developing and developed countries. The registration of land titles gives the owner greater acces to credit.…”