BACKGROUND OF THE TORRENS

SYSTEM OF REGISTRATION
> In this system, title by registration takes the place of title by deeds of the system
under the general law
> A sale of land for example is effected by a registered transfer, upon which a
certificate of title is issued
o Certificate is guaranteed by statute, and with certain exceptions, constitutes
indefeasible title to the land mentioned therein
o Under old system, the same sale would be effected through conveyance, depending
on its validity, apart from intrinsic flaws, on the correctness of a long series of prior
deeds, wills, etc.
> Object of the Torrens system: to do away with the delay, uncertainty, and expense of
the old conveyancing system
> Generally, by Torrens systems are meant those systems of registration of
transactions with interest in land whose declared object is, under governmental
authority, to establish and certify to the ownership of an absolute and indeafisible title
to realty, and to simplify its transfer.

Torrens Title System

Torrens Title System
A system for recording land titles under which a court may direct the issuance of a ce
rtificate of title upon application by thelandowner.

The Torrens title system is a method of registering titles to real estate. Real estate that
is recorded using this method isalso called registered property or Torrens property. Th
e system is used in the British Commonwealth countries, includingCanada, and in Eur
ope but has not been widely adopted in the United States. The first U.S. Torrens syste
m was enacted byIllinois in 1897.

The system is named after Sir Robert R. Torrens, who introduced it in South Australia
in 1858 and later lobbied for itsadoption in other parts of the country. He wrote severa
l books on the subject, arguing that his system simplified the transferof real property a
nd eliminated the need for repeated examinations of land titles.

Under the traditional system of transferring, or conveying, land, the history of the pro
perty in question must be examined toensure that the seller can convey good title to th
e purchaser. When property is sold, a deed is filed and recorded with thecounty land o
ffice; the deed contains the names of the seller and the buyer; the ownership relationsh
ip of the sellers andbuyers, if more than one seller or one buyer is involved (for exam
ple, joint tenants or tenants in common); and the legaldescription of the property bein
g transferred. This information is abstracted from each deed and recorded in a docume
ntcalled an Abstract of
Title. An attorney or a real estate title examiner inspects each entry to determine that
good title hasbeen passed with each transaction. If any problems exist with the title, th
ey must be remedied before the purchaser mayobtain good title.

A Torrens system does away with this process. A court or bureau of registration opera
tes the system, with an examiner oftitles and a registrar as the key officers. The owner
of a piece of land files a petition with the registrar to have the landregistered. The exa
miner of titles reviews the Legal
History of the land to determine if good title exists. If good title doesexist, the registr
ar issues a certificate of title to the owner. This certificate is ordinarily conclusive as t
o the person's rightsin the property and cannot be challenged or overcome by a court o
f law. If a mistake is made by the examiner of titles, aninsurance fund pays the person
who holds a claim against the land. The fees charged to examine and register property
payfor the insurance fund and the operation of the registration office.

When the owner sells the property, the certificate alone is evidence of good title, elimi
nating the need for a new examinationof title. The purchaser presents the deed and the
certificate of title to the registrar, who records the purchaser's name on thetitle.

The one drawback to a Torrens system is the initial cost of registering the property. Th
e system is most effective whenunimproved land is subdivided for the first time becau
se it reduces the number of deed entries an examiner must review.