Promote security of title and security of transaction

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Promote security of title and security of transaction by 2. Giving publicity to interests so that conflicts of property rights are less likely to occur 3. Protects purchasers against risk of Unregistered prior interests, and defects in the chain of title 4. Indemnifies those who suffer loss through Registry mistake or a rule of the system RUOFF’S 3 PRINCIPLES OF THE TS 1. Mirror principle : the register mirrors accurately and completely the current state of the title 2. Curtain principle : purchasers can rely on the register and need not investigate how the grantor acquired her registered title 3. Insurance principle : one who suffers loss through registry error or a rule of the system should receive monetary indemnity or compensation SALE OF TORRENS LAND – 3 STAGES 1. Contract signed by parties. Deposit usually paid by purchaser on signing or within a few days 2. Settlement after 30, 60 or 90 days. Purchaser pays balance of price and takes signed transfer and certificate of title. Often, mortgagees are involved, who will provide finance. Often the vendor will be paying their mortgage off by selling the house. This is known as discharging the mortgage. In Vic, the public can do the conveyancing themselves. First, discharge original mortgage, second register transfer, then register mortgage to incoming mortgagee. With electronic conveyancing, this will go. The THIRD step is registration of the title. Steps two and three often have delays between them. 3. Transfer is registered at Land Registry and title passes to purchaser. ELECTRONIC CONVEYANCING 1. All Australian States are committed to a National Electronic Conveyancing System (NECS). THIS ISN’T EXAMINABLE!!! This electronic stage will take you right through to both parties being notified that registration has passed. Is yet to be fully implemented, but it will look like the Victorian model. 2. Computerised certificate of title is the new term for duplicate certificate of title. 3. The system will allow online settlement, lodgment of instruments and notification of change of ownership. 4. Financial settlement will occur online 5. Owner’s Certificate of Title will disappear. 20
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21 MEANING OF INDEFEASIBILITY 1. Core meaning of indefeasibility is security (enforceability, as can’t be taken away from me, other’s property rights can’t be enforced against me). 2. A registered owner’s title is indefeasible in two senses: It cannot be set aside on the ground that he was not entitled to it (except in case of fraud) It is not subject to any prior interests (other than known categories of exceptions) KEY PROVISIONS OF THE TLA 1. S 40(1) ‘sterility’ provision – instruments do not pass title, only registration does. Basically, GL rule does NOT apply, rather the instrument passes title/registration.
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