1. Torrens Land Registration
Carol Foglesong
Peter Rabley
Mark Monacelli
David Ewan

2. Introduction
A year ago (March 2009) Peter Rabley presented “Land Registries Around the World”
Inquires followed:
I’ve heard about Torrens land registration but I have no idea what it is!
Is it better or just different?
So, this is your educational session
Just looking at the panel, you know they have opinions, but they are here to share objective information today

3. Introduction They mean to be thought-provoking
So THAT’S why they do it that way!
What IF we did it differently?
Might this change my view of other proposed changes in the industry?
Can this information help me do my job better tomorrow?

4. Introduction
Presentation is founded on a whitepaper currently being drafted titled:
“The Earthen Vessel: Land Records in the United States”
Special thanks to Justin Holl of ILS

5. Introduction Peter Rabley, International Land Systems
Background & History of Torrens in the US
Mark Monacelli, St. Louis County Recorder
A Day in the Life
David Ewan, NJ Title Insurance Company
Torrens & the Title Insurance

6. Background on Torrens
Peter Rabley
International Land Systems

7. Background on Torrens in the US – Why?
Government function to maintain land records
The earliest written records from 4th century B.C.E. in Mesopotamia
Last two centuries legal rights and responsibilities in real estate transactions have become a primary concern
Key Government function has always been to keep records regarding land and other real estate to properly assess its value and collect real estate taxes
Earliest cuneiform land records are administrative property records dealing with land, animal husbandry and personnel management

8. Background on Torrens in the US – Why?
Good land records inspire market and public confidence
Property rights are a major engine to economic development
Transparent property rights and processes are essential to stable economic growth
Sustain stability & economic development by registering private property rights that promotes internal confidence between its people, its commercial enterprises and its government.

9. Background on Torrens – Principles of Land Systems
PARTIES
Owners
Tenants
Mortgagors
Trustees
Caveators
Attorneys
PROPERTY
Parcels
Buildings
Construction
Apartments
RIGHTS
Ownerships
Leaseholds
Servitudes
Restrictions
Encumbrances
Caveats
Sustain stability & economic development by registering private property rights that promotes internal confidence between its people, its commercial enterprises and its government.

10. Background on Torrens – Expectations of Land Systems
Simple & Understandable Procedures
Effective & Secure Documentation of Rights
Protection against Infringement of these Rights
A Public Record of these Rights so Others Know
Records Complete and Incontrovertible Proof
Convenient Methods for Transferring these Rights
Effective Procedures for Preserving the Record
A Simple, Understandable Procedure for Recognizing Rights
Effective, Secure Documentation of Rights
Protection against Infringement of these Rights by Others
A Public Record of these Rights so Others Know
Records Complete and Incontrovertible Proof
Convenient Methods for Transferring these Rights
Effective Procedures for Preserving the Written Record

11. Background on Torrens – Expectations of Land Systems
Simple & Understandable Procedures
Effective & Secure Documentation of Rights
Protection against Infringement of these Rights
A Public Record of these Rights so Others Know
Records Complete and Incontrovertible Proof
Convenient Methods for Transferring these Rights
Effective Procedures for Preserving the Record
A Simple, Understandable Procedure for Recognizing Rights
Effective, Secure Documentation of Rights
Protection against Infringement of these Rights by Others
A Public Record of these Rights so Others Know
Records Complete and Incontrovertible Proof
Convenient Methods for Transferring these Rights
Effective Procedures for Preserving the Written Record

12. Background on Torrens – Early Land Systems - US
Turf & Twig
Livery of Seisin
Terminus ”stake and heaps of Stones”
"The lucky new Commoner goes to his "given" acre and cuts a turf from the selected site and drops two shillings in the hole made. The High Steward then twitches him with a twig and sticks the twig in the turf, then hands it to him saying, "This turf and twig I give to thee, as free as Athelstan gave to me, and I hope a loving brother thou wilt be." The High Steward then takes the money out of the hole and the new landowner replaces the turf.“ 12th century – Athelstan King of England
“A ceremony performed in medieval England that effected the transfer of land from one party to another.”Livery of seisin was the dominant method of transferring land in England until 1536, and it continued to be legal until
1925. “A smack on the ear!”
Terminus the god of boundaries. The stones used to mark borders were sacred to him. In February Terminalia was celebrated by the Romans. The stone or stump boundary-markers were “drenched in sacrificial blood and placed on flowers to renew its protective powers”, “Without you every field would be disputed”
Property market from Harvard Ma – private property with initials of owner.
Zero mile post in Washington DC used for as the original distance for freeways from Washington. DC itself is marked by 40 milestones that form the boundary of the District.

13. Background on Torrens – History of Land in the US
Spain in Florida and the Southwest,
France east of the Mississippi and north of the Ohio River,
The Netherlands present day New York,
England along the eastern seaboard,
Russia extreme NW including Alaska.
The exact extent of the jurisdiction of each sovereign was ill-defined and often disputed. For example, although a Dutch company was operating at and near Manhattan, the territory was also claimed by Virginia pursuant to its charter.
Figure 1: Spanish land holdings in the US 1562 (Source: National Archives II Univ. of Maryland)
England along the eastern seaboard, but claiming land that was also claimed by France,

14. Background on Torrens – History of Land in the US
In the original thirteen colonies a charter for the land from the King.
William Penn received a charter from Charles II for Pennsylvania.
The London Company received a charter to establish a settlement that became Virginia, and the
Plymouth Company received a charter for what is present day Maine
Pilgrims received a patent from the London Company for a settlement in New England near Cape Cod.

15. Background on Torrens – History of Land in the US
Governing Subdivisions in Virginia based on those of England of the time.
Shires in Virginia
Boundaries extended Westward
Land records first office established in early government divisions
“Conveyances of land must be registered in the court of the county wherein they lie, or in the general court, or they are void, as to creditors and subsequent purchasers.” T. Jefferson
Vital and land records were established at the county level in the original colonies
The example of Virginia offers a fair illustration for the history of the creation of counties. In densely populated England areas were divided into tithing's (ten families), hundreds (hundred families), and shires. No tithing's were established in the colony of Virginia. Hundreds were established, but the division was purely territorial and had no reference to the number of families occupying the large unpopulated areas. Early on the administration of Virginia was divided into cities, boroughs, and hundreds, with the General Assembly of the colony convening in Jamestown. By 1634 the colony was divided into eight large shires (counties) for administrative purposes. “The names bestowed on the new shires were James City, Charles City, Elizabeth City, Henrico, Warwick River, Warrosquoick, Charles River, and Accomac. Each was divided into parishes, precincts or boroughs for the constables, and precincts or walks for surveyors of the highways”. (Bruce 1910) p. 294.
vital and land records were established at the county level in the original colonies the tradition migrated westward with the population and the creation of new states out of territories
(Jefferson 1984) p. 260.
“The recording of deeds in the United States can be traced back to 1641 in Massachusetts; in the Plymouth Colony to 1636; in Connecticut to 1639; in New Jersey to 1676, 1683, and It has been lately surmised, and perhaps proved, that the Pilgrim Fathers brought the happy idea of recording their conveyances from Holland. The first recording act in Virginia was passed in 1639…; in Pennsylvania, in 1715, by an act still in force. In New York the practice of acknowledging and recording deeds existed already under the Dutch government, and was continued by the Duke’s Laws in The Maryland registry law of 1692 was in force till In North Carolina an act of 1715 made the registry of the deed a prerequisite for passing title. All the colonies had recording laws before the Revolution, and in the new states the recorder’s office was one of the first institutions organized by the newcomers; in California, before any legal government. (PATTON ON TITLES 1957) vol. I, footnote 41, p. 11.

16. Background on Torrens – History of Land in the US
1787 Constitution created Federal Government
Article X
“The powers not delegated to the United
States by the Constitution, nor prohibited by it
to the states, are reserved to the states
respectively, or to the people.”
Laws of Real Property were left to the States.
Treaty of Paris 1783 British cede land to the United States
Northampton County Courthouse Eastville Va
It was never the intention that the states would give up their sovereignty, but a federal government was established by the Constitution in 1787 empowered to regulate interstate commerce, international dealings through treaty and other mechanisms, the common defense against international aggression, and taxation to provide for the common defense and general welfare of the United States. These principles are reflected in the sections of the Constitution setting out the powers of Congress, the President, the Federal Courts, and Article IV, that regulates the states with regard to these and other matters.
The land ordinance and NW territory allowed Congress to annex the lands outside of the original 13 states and lay the groundwork for the establishment of the other states. And as a way to begin to deal with the many claims that had been laid on land and to deal with the disputes that had arisen.
Land Ordinance of 1785 & Northwest Territory Ordinance of 1787

17. Background on Torrens – History of Land in the US
1812 General Land Office (GLO) in the Department of Treasury managed the lands in these “other” states
In 1946, the GLO was merged with the Federal Grazing Service to create the BLM
“253 million acres (1,023,855 km2) or one-eighth of the landmass of the country. BLM also manages 700 million acres (2,832,800 km2) of subsurface mineral estate underlying federal, state and private lands”
Establish method for organizing and subdividing the federal land through the public land survey system (PLSS).
Federal Grazing Service merged with GLO to create the modern day Bureau of Land Management found now with the Department of the Interior. The BLM's stated mission is
"to sustain the health, diversity and productivity of the public lands for the use and enjoyment of present and future generations.“
Federal Grazing service was created to implement the Taylor Grazing Act which managed the leasing of public land for grazing purposes.

18. Background on Torrens – Formal Systems of Land in US
Two formal systems of property
Deeds Register Systems
Title Register Systems
Deeds Registers are older than Title Register Systems
Deeds
Name Index
Parcel Index

19. Background on Torrens – Deeds & Title Systems
LEGAL
RELATION
RIGHT(S)
0BJECT
LEGAL LAND
OBJECT
SUBJECT
RIGHTFUL CLAIMANT
(PERSON/ENTITY)
RELATIONSHIP BETWEEN MAN AND LAND IN DEED SYSTEM
RELATIONSHIP BETWEEN MAN AND LAND IN TITLE SYSTEM
In a deeds system documents are recorded the. In a title system the registration of the right creates the title to the property.
Source: Hansen 1995

20. Background on Torrens – Deeds & Title Systems
Deeds: little governmental scrutiny
Title: high degree of governmental scrutiny
Deeds: Rapid recording
Title: Slower and bureaucratic
Deeds: Burden on private sector to determine right holders
Title: Burden on government to determine right holders for both first registration and subsequent transactions

21. Background on Torrens – Deeds & Title Systems
Deeds System
Title System
Relatively minor administrative costs
Normal administrative skills
The number of staff depends upon number of transactions
Cost of maintaining registry is much less for government
Rights validity is determined by private sector
Major administrative costs
Requires highly skilled legal specialists
Expensive
Cost of maintaining system is borne by government
Rights validity determined by government

22. Background on Torrens – Title Registration Systems
Title registration origins in Germany, Austria, Switzerland.
Hanseatic League or the UK?
Different use of the property concept and organization of the cadastre (fixed) and role of private licensed surveyors.
It seems that he was ably helped by Hubbe a lawyer from Germany who was probably the one who told Torrens of the 600 year old system that operated in the Hanseatic towns of Germany, especially Hamburg

23. Does not factor in Customary Systems – but reflects a colonial/historical perspective only

24. Background on Torrens – Title Registration Systems
Government Certified Title
Appropriate Legislation
Certificate of Title (Transparent to Public)
Ownership
All Encumbrances
Indefeasible Title
Government Maintains Adjudicated Title for Subsequent Transactions
Parcel Based
Guarantees (Mirror, Curtain, Possibly Monetary)
Adjudication: Systematic or Sporadic
It seems that he was ably helped by Hubbe a lawyer from Germany who was probably the one who told Torrens of the 600 year old system that operated in the Hanseatic towns of Germany, especially Hamburg

25. Background on Torrens – Title Registration Systems
There are two different phases in a title registration system
First registration, that is bringing a property into the title system in the first place
Subsequent transactions after first registration
First registration usually involves an adjudication process
This can be administrative, or
In a court action
It seems that he was ably helped by Hubbe a lawyer from Germany who was probably the one who told Torrens of the 600 year old system that operated in the Hanseatic towns of Germany, especially Hamburg

26. Background on Torrens – Title Registration Systems
First Registration – Combined Approach – Systematic and Sporadic
May be most practical economically
Trigger approach (most common) HMLR e.g.:
transfers for value,
mortgages,
subdivisions resulting in three or more parcels of land,
new condominium developments, and
Any proceedings that result in an adjudication of titles.
Use systematic registration in certain problematic areas, sporadic in others

27. Background on Torrens – Title Registration Systems
Guarantees
Title registration systems guarantee that the persons named as owners in a certificate of title have an indefeasible title
They do not necessarily guarantee boundaries, but a few systems do Austria and Germany
They do not guarantee the validity of encumbrances

28. Background on Torrens – Title Registration Systems
Guarantees
Mirror guarantee: That the register reflects the current status of title
Curtain guarantee: That the current register is the sole source of title information and that no other source, particularly historical real estate records, need be consulted in determining ownership and current encumbrances, and
Indemnity guarantee: Often, though not always, that the government will reimburse persons suffering loss caused by errors, omissions, or misfeasance of the Registrar under legislatively defined conditions.

29. Background on Torrens – Title Registration Systems
Encumbrances can’t be guaranteed, because their validity depends upon external facts
Example: Mortgage
Could be usurious
Truth in Lending may have been violated
Other consumer protection may not have been followed

30. Background on Torrens – Title Registration Systems
Registered title is considered adjudicated title
Once a title is registered every transaction is scrutinized by the registry office for its validity
This is in contrast to deeds registration where the validity of a transaction is not determined by the registry office
The office must be staffed with highly skilled professionals

31. Background on Torrens – Title Registration Systems
Examination
The public needs access to the register in order to determine the current status of title
Because of the “curtain guarantee” there is no need for a title search and examination of the “chain of title”
There is no chain of title for a parcel that is registered in a title registration system
Some jurisdictions allow direct access to view the register for a parcel of real estate

32. Background on Torrens – Title Registration Systems
Examination
Some jurisdictions require that an application be submitted stating the reasons for viewing the information,
All systems will provide a title report,
No title search to construct chain of title,
Attorney simply reviews the information on the certificate of title
Mortgages, liens will have to be paid at closing
These will be listed in the encumbrance section of the certificate of title
Very easy to use for attorney
Understandable to client

33. Background on Torrens – Title Registration Systems
Examination
Title Registration systems are often perceived as being bottlenecks in a transaction because they require additional scrutiny
There is often a high rejection rate of documents
The registry office often requires multiple trips by parties to satisfy examiners

34. Background on Torrens – Who was Torrens?
Sir Robert Torrens the colonial treasurer and registrar-general for South Australia in 1852.
He advocated for conveyancing reform
Published a Torrens bill in 1856 and as member of the House of Assembly introduced a bill in 1857, which was adopted as law on January 28, 1858,
His “system can now be found in Australia, New Zealand, US, some provinces of Canada, and some countries in the Caribbean, Asia and Africa.
Modified Torrens – starting in late 1950’s in Kenya
Entered US through Illinois in 1897

35. Background on Torrens – Why the Torrens System?
“by reason of complexity the community is firmly bound to use a solicitor,
heavy costs are thereby imposed no matter how simple the transaction may be,
"losses and much perplexity" are occasioned to purchasers and mortgagees by reason of the uncertainty of title,
the time involved in the legalities of the transaction is unsuited to the needs of a progressive community, and
the operation of this law (the English Law of Real Property) diminishes the value of land as a secure and convenient basis of credit.”

36. Background on Torrens – Why the Torrens System?
Three Key Underpinnings:
“All properties were to have one document, a certificate of title, to evidence ownership,
All interests in every property had to be registered on that certificate of title, and
The certificate of title had to be guaranteed by the government. “

37. Background on Torrens – Features of the Torrens System
Every estate in freehold is represented by a certificate of title,
Title to land is exhibited by registration,
Every certificate of title is guaranteed by the government,
Every registered proprietor named on the certificate of title can be treated, so far as third parties are concerned, as possessing an indefeasible title,
Any person who contemplates a dealing with a registered proprietor must be quite sure that they are in fact dealing with that person,
Registration may correct a defect in title for bona fide purchasers,

38. Background on Torrens – Features of the Torrens System
The certificate of title is the place where the general public is entitled, and expected, to look for interests affecting a property,
Knowledge, or notice, of an unregistered or outstanding interest in a property is not considered of itself to be evidence of want of good faith, and
No trusts may be registered on the certificate of title.

39. Background on Torrens – History of Torrens in the US
“ That it is the sense of the delegates of the World’s Real Estate Congress that they should do what lies in their power to call the attention of their various State Legislatures to the benefits of the Torrens system and recommend its adoption, so modified as to suit to our State Constitution and laws”
‘World’s Real Property Congress’ World’s Colombian Exposition, Chicago 1893

40. Background on Torrens – History of Torrens in the US
Used initially in US to clear problems in the record
Torrens system was instituted in Cook County 1895, Illinois following the destruction of all public land records in the Great Chicago Fire of 1871, and in metropolitan Boston as a response to the poor quality of historical land records in New England.
Schick and Plotkin 1978

41. Background on Torrens – History of Torrens in the US
Enactment in California, Massachusetts, Colorado, Minnesota, Washington, Ohio, and New York.
Initial virulent opposition by conveyancing attorneys and title insurance companies.
Legal attacks on Constitutional grounds were common, and successful in some instances.
At one time more than twenty states had Torrens statutes, but most have been repealed.
Schick and Plotkin 1978

42. Background on Torrens – History of Torrens in the US
Eight states currently utilize Torrens land registration systems.
Active Torrens registration include Minnesota, Massachusetts, Colorado, Georgia, Hawaii, North Carolina, Ohio, and Washington.
The U.S. Territories of Puerto Rico and Guam also utilize Torrens systems to some degree.
Schick and Plotkin 1978

43. Background on Torrens – History of Torrens in the US
New York and Illinois previously utilized Torrens systems. Suffolk County was the last New York county to have active Torrens certificates.  All certificates were to be delivered to the County Clerk for recording on or before January 1, From January 1997 to December 1999 adverse instruments were allowed.  Voluntary instruments were disallowed on January 1, 1997.
Schick and Plotkin 1978

44. Background on Torrens – History of Torrens in the US
In Illinois the use of the Torrens system declined in the 1930s,
60 years of public records were available to private insurance companies, who competed vigorously with the Torrens system, and
In January 1992 the Illinois legislature began the process of phasing it out.
Schick and Plotkin 1978

45. Background on Torrens – History of Torrens in the US
Schick and Plotkin 1978

46. Background on Torrens – History of Torrens in the US
Schick and Plotkin 1978

47. Background on Torrens – History of Torrens in the US
Schick and Plotkin 1978

48. Background on Torrens – History of Torrens in the US
Schick and Plotkin 1978

49. Background on Torrens – History of Torrens in the US
Schick and Plotkin 1978

50. Background on Torrens – History of Torrens in the US
Schick and Plotkin 1978

51. Background on Torrens – History of Torrens in the US
Schick and Plotkin 1978

52. Background on Torrens – History of Torrens in the US
Schick and Plotkin 1978

53. Torrens In Daily Use
Mark Monacelli
St. Louis County (MN) Recorder

54. Torrens In Daily Use When/why was Torrens introduced in MN
The difference between Torrens and Abstract Title
View a Torrens Title certificate
Torrens benefits
Torrens drawbacks

55. History of Torrens in MN
Introduced in 1901 as an alternative way to title property
Legislation authorized three MN counties with a population over 75,000
Hennepin, Ramsey and St. Louis

56. From the 500’ Level
Abstract title-a quite title action, by Court order, will provide evidence of title
Torrens system the title is registered in the name of the owner, with legal description, and a new source of title is created
Torrens and abstract title are separate
Torrens is an adjudicated title process
Under the jurisdiction of the District Court

57. To Register property/boundary
Owner files an application with the Court
Examiner of Titles examines the abstract
Legal advisor to the Registrar
If boundaries are unclear may request a Registered Property Survey
Public notice is served
Examiner cites defects, etc.
If no contest-title is issued
If contested the Court will determine ownership, etc.

60. Certificate of Title
Transfer of ownership can only be by deed, court order or certificate from the Examiner of Titles
Subject to seven statutory exceptions
The Registrar issues the Certificate of Title
What if there’s a mistake?
Assurance Fund compensates for loss
$1.50 per document held by the state
Few claims

61. Benefits… Not subject to claims/adverse possession
Peace of mind as the boundary, etc. is set
Owners duplicate prevents fraud
Cleaner and more perfect form of title
All title information is listed on cert., title research is easier
Fewer legal description issues
Most new developments use Torrens
System is automated
MN Chapter 508A is streamlined process/uncontested

62. It’s not all smooth sailing… *Mgmt. perspective*
Two title plants
Increased cost/requires more employees
Two separate job skills
Staff requires more skills and training
Cross training is more problematic
Cannot commingle operations
Microfilm, etc.
Can be confusing to the public
Can have two forms of title in a parcel
Takes more time

63. Torrens & Title
David Ewan
New Jersey Title Insurance Company

64. Background of Title Insurance
As discussed, deed recording/registration has been used in the US for hundreds of years.
As with Torrens, title insurance is a relatively “new” development.
Title insurance only began in 1876 in Philadelphia, PA

65. Background of Title Insurance
Before title insurance, buyers in real estate transactions bore sole responsibility for ensuring the validity of the title held by the seller.
If the title were later deemed invalid or found to be fraudulent, the buyer lost his investment.

66. Background of Title Insurance
Question: Why did Abraham Lincoln wind up living in Illinois?
Answer: Because his father (Thomas Lincoln) was the defendant in a title claim in Kentucky where he was born. Rather than pay to defend against the claim, they moved to Indiana (and then later to Illinois).

67. Background of Title Insurance
In 1868, Watson v. Muirhead was heard by the Pennsylvania Supreme Court.
Muirhead (plaintiff) had lost his investment in a real estate transaction as the result of a prior lien on the property.
Watson (defendant), the conveyancer, had discovered the lien prior to the sale but told Muirhead the title was clear after Watson’s lawyer had (incorrectly) determined that the lien was not valid.

68. Background of Title Insurance
The court ruled that Watson was not liable for mistakes based on professional (the lawyer’s) opinions.
Like Thomas Lincoln, Muirhead lost big time.
As a result, in 1874, the Pennsylvania legislature passed an act allowing for the incorporation of title insurance companies.

69. What is Title Insurance?
Title insurance originated as a contract of indemnity that covers the insured person against loss or damage arising out of existing title defects or encumbrances other than those specifically excepted.
Modern extended coverage policies also include protection for certain post-closing events, such as forgery.

70. Torrens AND Title Insurance?
If the Torrens System says the State provides assurance as to title, why would we need title insurance?

71. Torrens AND Title Insurance?
To promote ease of transaction, the Torrens system reverses some of the property rules of common law conveyancing.
A purchaser for value (and, in some jurisdictions, a gratuitous transferee) obtains upon registration a title that cannot be impugned on the ground that the seller’s title was defective, or that the conveyance from the seller to the purchaser was invalid for any reason.
REGISTRATION = TITLE

72. Torrens AND Title Insurance?
The Torrens system compensates the ‘true owner’ for the loss of his or her property right pursuant to this rule.
Under the Torrens system, a man is to have either his interest in the land or adequate monetary compensation therefor.
In reality, there are gaps in the coverage provided by the State guarantee. The gaps, and the extent to which title insurance can remedy them, are as follows:

73. Torrens AND Title Insurance?
Registration Gap
The Torrens System operates only upon actual registration (not submission).
The period between acquisition of a property right and the actual registration of it is the “registration gap,” one of the major problems facing the Torrens system.

74. Torrens AND Title Insurance?
First Resort or Last Resort?
Title insurance can improve upon the protection provided by the Torrens indemnity by giving greater coverage against risk and improved enforcement of rights.
The Torrens statutes may vary considerably in their provisions for enforcement of remedies. In some jurisdictions, the Torrens indemnity operates as a fund of last resort. In these jurisdictions, claimants must first exhaust their remedies against the person who was responsible for the loss or who has benefited by the error before becoming eligible for payment from the fund.

75. Torrens AND Title Insurance?
Additionally, the trend of recent legislative change in Torrens jurisdictions has been to restrict rather than to extend right to indemnity.
Governments have become increasingly unwilling to indemnify for losses caused wholly or partly by the fraud or negligence of agents and professionals acting for the claimant.

76. Torrens AND Title Insurance?
With Title Insurance, the insured is entitled to payment of the indemnity without any necessity to bring a legal action against the insurer or any other person who caused the loss. (First Resort).

77. Torrens AND Title Insurance?
Post Acquisition Risks
The extension of the modern title insurance policies to cover post-acquisition risks makes title insurance more attractive to holders of Torrens titles, since the principle of immediate indefeasibility (some jurisdictions) has reduced their security in the period following registration.
Under the rule of deferred indefeasibility (other jurisdictions), registered owners deprived of their interest by the registration of a forged or otherwise void instrument were entitled to be restored to the register.

78. Torrens AND Title Insurance?
The shift from deferred to immediate indefeasibility improves the security of purchasers, but increases the risks that “true owners” may be deprived of their titles after registration through the wrongful act of another.
In effect, immediate indefeasibility operates to shift risk of loss from the pre-acquisition to the post-acquisition stage.

79. Torrens AND Title Insurance?
Duty to Defend
Under a title insurance policy, in addition to indemnity, the insurer undertakes to cover the costs, legal fees and expenses it incurs in defending the insured’s title.
The costs incurred by the insurer in defending the insured’s title do not reduce the amount of the indemnity for loss payable under the policy.

80. Torrens AND Title Insurance!
Each has its strengths.
Each has its weaknesses.
The two are NOT incompatible
And actually can complement each other.

81. Background on Torrens – What happened in the US?
Economies of scale are needed to realize costs savings for Torrens systems,
Secondary use is the major benefit not initial,
Large initial volume is needed,
Private sector initially provided strong opposition and mobilized resources to transfer the volume to the market. There was no such lobby for Torrens,
Requires government to take liability and provide guarantee,

82. Background on Torrens – What happened in the US?
Many benefits to the system are external to the person receiving title,
State had to compete with private sector to hire and train highly skilled staff,
Title Insurance developed quicker than State Assurance Funds,
US is large and land recording is fragmented to the local level 3592 offices, and
Inertia. Historically deeds systems had been in place for 200 years before Torrens was introduced.

83. Open Discussion
Questions?
Comments?
Interrogatives?

84. Torrens Land Registration
Carol Foglesong
Peter Rabley
Mark Monacelli
David Ewan