Real Estate Council of Alberta Fundamentals Practice Exam

What does the Torrens System ensure?

1. Safety of rented properties

2. Guarantee of title security

3. Control of encumbrances

4. Process for property rental

The correct answer is: Guarantee of title security

The Torrens System ensures a guarantee of title security, which is a fundamental aspect of property law in jurisdictions that utilize this system. Under the Torrens System, the government maintains a centralized registry of land titles reflecting the ownership of properties, and provides a state-backed assurance that those listed titles are accurate and free from claims or disputes. This system reduces the risk associated with property transactions, as an individual can rely on the registry as definitive proof of ownership, thus providing security against potential claims from other parties. Title security under this system means that when a property is bought, the buyer can be confident that they are acquiring valid title to the property and that their ownership will be protected against future disputes. This distinguishes the Torrens System from other methods of title recording that may not offer the same level of assurance regarding ownership rights or may be more susceptible to errors and fraud.